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Communist Party of India (CPI), an India-based political party, has demanded cancellation of solar PPAs signed in Andhra Pradesh through the Solar Energy Corporation of India. According to CPI national secretary K. Ramakrishna, the Andhra Pradesh government signed agreements in 2021 to procure 7 GW of solar power from projects located in Rajasthan. The procurement tariff under these agreements has been fixed at INR 2.99 per kWh. CPI compared this tariff with Gujarat where solar power procurement occurred at INR 2.49 per kWh. The difference of about 55 paise per kWh could impose an additional burden of nearly INR 1.1 lakh crore during the 25-year agreement period. Ramakrishna urged Chief Minister N. Chandrababu Naidu to review the agreements and reconsider the procurement terms. He also cited a case in Punjab where the State Electricity Regulatory Commission rejected a proposal to procure 2.2 GW of solar power from other states due to higher costs.
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