PPAs of 21 wind projects of Suzlon, Axis Energy face headwinds

Twenty-one projects of wind energy company Suzlon and Axis Energy and their clients in Andhra Pradesh, of total capacity of 776.9 MW are likely to face turbulence and possible withdrawal.

In a memo filed with the Andhra Pradesh Electricity Regulatory Commission (APERC), Andhra Pradesh Southern Power Distribution Company (APSPDCL), has sought the regulator’s permission to withdraw the Power Purchase Agreements (PPAs) entered into with these wind energy companies and their clients.

The Chief General Manager of APSPDCL in the memo stated “in view of the precarious financial position of AP discoms and consequent inability to bear the additional financial burden involved in purchasing power from 21 wind developers, they have decided to withdraw the PPAs entered with various wind power projects clients of Suzlon and Axis Energy Ventures India.”