Several state governments used to tinker with power purchase agreements (PPAs) between their discoms and power generators and this added to the latter’s woes.
The new government in Andhra Pradesh has buttressed this trend by forming a committee to revise “abnormally priced wind and solar” PPAs, saying these have “resulted in unjustified burden on the consumers of the state”, besides contributing to the financial woes of state-run discoms. The state will also request the Union government to bear the “additional financial burden” from buying renewable power.
