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Andhra Pradesh Clears 300 MW Adani Solar Power Offtake; SECI to Shoulder ISTS Charges

The Andhra Pradesh government has approved the commencement of scheduling and offtake of 300 MW of solar power under a power supply agreement (PSA) with the Solar Energy Corporation of India (SECI), effectively operationalising a long-pending deal linked to Adani Green Energy Limited (AGEL).

In an order dated February 26, the state government authorised the start of power scheduling following operationalisation of connectivity by the Central Transmission Utility of India Ltd (CTUIL). The directive empowers the Andhra Pradesh Power Coordination Committee (APPCC), APDISCOMs, APRAPPL, and APSLDC to manage scheduling, coordination with SECI and central load dispatch entities, and commercial settlements in line with the PSA provisions.

However, the approval carries a key rider: the state will not bear inter-state transmission system (ISTS) charges and associated losses up to the delivery point at the Andhra Pradesh boundary. Instead, these costs will be borne by SECI.

The decision comes over a year after developments in the United States brought scrutiny to the agreement. Court filings by the U.S. Securities and Exchange Commission (SEC) and claims by the United States Department of Justice referenced the solar power arrangement in the context of broader allegations involving meetings between industrialist Gautam Adani and former Andhra Pradesh Chief Minister Y. S. Jagan Mohan Reddy in 2021.

The current administration led by N. Chandrababu Naidu had earlier kept the matter under review, assessing the financial implications of cancelling the PSA. The state subsequently determined that terminating the agreement could have adverse fiscal consequences, prompting it to proceed with operationalising the offtake under revised conditions.