Andhra Pradesh Clears Adani Solar Deal with Rider

• Andhra Pradesh has cleared 300 MW of the power deal with Adani Green Energy Limited, directing coordination with the Solar Energy Corporation of India
• The state will not bear inter-state transmission (ISTS) charges and losses up to its delivery point
• Despite allegations cited by the US Securities and Exchange Commission, the government has limited approval to 300 MW instead of cancelling the 7,000 MW contract

Fifteen months after US bribery charges brought into question the power supply agreement between Adani Green Energy Limited and the Andhra Pradesh government, the N Chandrababu Naidu-led Andhra Pradesh government has moved to operationalise part of the deal through its approval of 300 MW power offtake.

The Andhra Pradesh Adani solar deal marks a significant AP energy policy update, as the state approval Adani project advances the Adani solar power project AP under specific Adani solar agreement conditions, reinforcing Andhra Pradesh renewable energy approval momentum and boosting solar power investment India.

“After careful examination of the matter, government hereby accord approval for commencement of scheduling/ offtake of 300 MW power under the PSA (power supply agreement) dated 01.12.2021 with SECI pursuant to operationalisation of connectivity by CTUIL (Central Transmission Utility of India Ltd)”, stated Chief Secretary K Vijayanand.

The order permits the Andhra Pradesh Power Coordination Committee to manage scheduling activities together with APDISCOMs, APRAPL and APSLDC while coordinating with Solar Energy Corporation of India and central load dispatch entities to conduct commercial settlements according to the power supply agreement.

Also Read: Adani, Embraer Sign MoU for Aircraft Manufacturing in India

The state has established its requirement to pay only for the costs associated with interstate transmission system charges and losses that occur before reaching the Andhra Pradesh delivery point.

N Chandrababu Naidu suspended the contract because he wanted to study how its cancellation would affect the financial situation. The state eventually recognized that penalties would result from its decision to withdraw from the agreement.

The US Securities and Exchange Commission, together with the US Justice Department, included the solar contract in their filings, which claimed that kickbacks protected solar power purchases from SECI. SECI had signed PPAs for 4,666 MW with AGEL and 2,333 MW with Azure Power, though the latter’s capacity was later transferred to AGEL.

Naidu made a public commitment to take action after the November 2024 allegations, but he later explained that proof was necessary to terminate contracts. The new order establishes an approach that enables the system to process 300 MW out of the 7,000 MW contract while transferring transmission expenses to SECI and awaiting business operations to become clear.