The PPP in question is intended for the sale of electricity from a 6.5 MW wind project in the State`s Anantapur district. The Commission ordered both parties to sign an amended AAE within two weeks. However, developers claim that the cost of capital has fallen significantly in recent years and that the recent decline in purchase prices does not reflect what they were for older projects. The aim is to put an end to the solar and wind PPAs that were set up by the N Chandrababu Naidu government government of YS Jagan Mohan Reddy. Following the AP government`s decision to cancel the AAEs, the case was referred to the AP High Court (APHC). Nine renewable energy companies then went to Andhra Pradesh High Court, which put GO on hold until August 22, after which the court will re-start the matter. Despite this, the government of Andhra Pradesh began to limit wind energy and was raised by Andhra Pradesh HC. Solar and wind proponents in Andhra Pradesh have called on the government to speed up hearings in the Amaravati High Court on the arguments of 8,000 megawatts (MW) of renewable energy that are affected by the state`s decision to revise power purchase contracts (PPPs). The project received a tariff of USD 3.37/kWh until the expiration of the PPP in November 2015, after which the Andhra Pradesh Power Coordination Committee, a public body responsible for assisting distributors in the state with commercial energy, interstate and national functions, asked the Commission to request an extension of the AAE for a period of two years. The extension of AAEs revised the tariff for the period between November 6, 2015 and November 6, 2017, downwards to $2.23/kWh. While the Reddy government`s intention was to reduce the “high” AAE tariffs, the step put 5.2 GW of installed wind and solar capacity, with a combined debt of $21,000 crore, on the risk of default, he added. The state agency also asked the generator to pay all unpaid taxes of $6.85 million ($96,126) to the petitioner for the power supply provided from May 2018 within one month.
In an attempt to spread the brewing right crisis in Andhra Pradesh, which could derail India`s clean energy, Union Minister Raj Kumar Singh had written to the government insinuating the risk of an erosion of investor confidence. The unsoverability of AAEs took the top spot in the context of the Andhra Pradesh government`s controversial attempts to revise tariffs to 2.43%, 2.44%, respectively, for wind turbines and solar panels and retroactively with developers of about 140 power plants.