Renewable PPAs in Andhra, Punjab: Power cos write to Centre

Renewable power producers have raised the issue of states like Andhra Pradesh and Punjab reneging on power purchase agreements (PPAs) and asked that the Punjab Governor veto a Bill that would allow renegotiation of existing PPAs in the state.

The Andhra Pradesh government is currently in a legal battle with renewable energy producers with the aim of renegotiating contracted power tariffs and the Punjab Assembly has passed a Bill to renegotiate tariffs under existing PPAs. Solar power tariffs have fallen drastically over the past 5 years leading to power purchased under earlier solar PPAs being significantly more expensive than prices under more recent PPAs.