Andhra Pradesh power regulator, main generation company spar over wind energy tariff

Andhra Pradesh, the most aggressive state in building renewable energy capacity last year, may soon lose its momentum because of a standoff between the state’s power regulator and its main generation company over the future cost of wind power.

As it does every year, on March 30, the Andhra Pradesh Electricity Regulatory Commission (APERC) passed an order setting down the preferential tariff the state would pay for wind power in 2017-18.

But the state’s main generation company, Andhra Pradesh Power Generation Corporation (APGENCO) would rather hold auctions for all wind projects it buys power from, as it finds the set tariff to be too high.

APERC has ordered tariff of Rs 4.35 per kWh for developers using the accelerated depreciation (AD) benefit and Rs 4.76 per kWh for those not availing of it. AD, a concession given to renewable energy projects, allows developers to claim 80% depreciation in the first year after project commissioning.

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