Companies worry over Andhra Pradesh rethink on solar, wind PPAs

Bengaluru: Concerns over the sanctity of renewable energy contracts in Andhra Pradesh in the wake of political developments could deliver a killer blow to the industry, developers said.

Andhra chief minister YS Jaganmohan Reddy, who took office at the end of May, has said he will revisit solar and wind power purchase contracts because he believes they were signed at higher rates than in other states.

At an informal meeting with developers on Monday, Andhra Pradesh energy officials maintained that tariffs above Rs 2.50 per unit would be renegotiated. Most tariffs in recent auctions have come in at about Rs 2.54 per unit.