Solar energy projects related to the controversial 7 GW of Adaani Green Energy in Andhra Pradesh have eventually showed a ray of hope. The project was facing a crisis due to regulatory uncertainty over transfer of 2.3 GW of additional capacity to Adi Green from Edire Power. The project is also part of the investigation by American agencies on bribery charges.
The Central Electricity Regulatory Commission has refused to intervene in the issue of transfer of agreements. The Commission said that this comes under the purview of the fee regulation of the Electricity Act, 2003. The regulator said that the right to transfer the assets has with the agency that allocated the project. Solar Energy Corporation of India (Seki) has allocated this project. Originally 2.3 Ggwot power procurement agreement was signed with Edire Power but the company left the project. Later Seki transferred these agreements to Adani Green Energy. This will not require further regulator approval to the 7 GW project.
The project came into controversy after allegations of bribery associated with Adani Group chief Gautam Adani. The prosecution document in the US mentions the then Andhra Pradesh government as the main bribe beneficiary. In a document of 23 page, the Central Electricity Regulatory Commission said that the matter does not come under its jurisdiction. The decision came after a petition filed by Seki, stating that it was taken after the request of Andhra Pradesh distribution companies.
Out of a total of about 7 GW, 4.6 GWing was allotted to Adani Green and 2.3 GW Ageor Power. Seki had signed separate power procurement agreements with both companies which got the approval of the Central Electricity Regulatory in April 2022.
After the Azure withdrew from the deal, Seki signed a revised power sales agreement with the distribution companies of Andhra Pradesh in December 2023, in which the share of the Ejore was transferred to Adani Green. Only then the regulator was contacted for approval of the agreement.
The Commission said that the fee for the project was already approved, so the application to approve it is not valid. According to the original fee petition, Andhra Pradesh had signed for 7 gW capacity at the rate of Rs 2.42 per unit. Seki signed a power procurement agreement on December 14, 2021 for 4.6 GW with the multi -purpose unit of Adani Green and on 16 December 2021 for 2.3 Gigwot with Ageor. The current order has come at a time when the Trump administration has directed the Department of Justice to stop prosecution against Americans accused of bribing foreign government officials, trying to achieve business in various countries through executive orders. It states that such steps ban American businesses and competitively damage them.
First Published – April 20, 2025 | 10:26 PM IST
