Deals Counterparts

Andhra Pradesh government signs PPAs for 7 GW of solar power from Rajasthan projects

Ppa Solar announced India Mar 14, 2026
7 GW
Capacity

Andhra Pradesh DISCOMs signed long-term PPAs for 7 GW of solar power, sourcing generation from projects in Rajasthan. This inter-state procurement leverages India's "One.

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Deal Analysis

Andhra Pradesh is securing a substantial 7 GW of solar power, with agreements signed in 2021 to procure energy from projects located in Rajasthan. This large-scale inter-state PPA, announced only recently, locks in a fixed tariff of INR 2.99 per kWh. Solar Energy Corporation of India (SECI), an Indian government company facilitating renewable energy programs, is involved as the developer. For the Andhra Pradesh government, focused on infrastructure development and attracting private investment, this procurement provides a significant clean energy base to support its economic growth. The five-year gap between signing and announcement highlights the complexity of coordinating such a massive cross-state energy transfer.
  • 7 GW solar power capacity
  • INR 2.99 per kWh fixed tariff
  • Inter-state procurement: Rajasthan projects for Andhra Pradesh
  • Agreements signed in 2021, announced March 2026

Source Intelligence

KEY DETAILS

Communist Party of India (CPI) has demanded cancellation of solar PPAs. Quote: "Communist Party of India (CPI) ... has demanded cancellation of solar PPAs". CPI compared this tariff with Gujarat where solar power procurement occurred at INR 2.49 per kWh. Quote: "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. Quote: "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. Quote: "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. Quote: "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."

Capacity
procure 7 GW of solar power
Location
Andhra Pradesh government signed agreements in 2021 to procure 7 GW of solar power from projects located in Rajasthan.
PPA Details
The procurement tariff under these agreements has been fixed at INR 2.99 per kWh.
Signing
signed agreements in 2021
PARTIES MENTIONED IN SOURCE
A
Andhra Pradesh government buyer

"the Andhra Pradesh government signed agreements"

medium quality Enriched Mar 14, 2026

Timeline

Announced
Mar 14, 2026
Signed
Closed

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