Open LCs for renewable firms or lose access to generation, Centre tells AP

Sets two-day dealine for compliance; denying access to Central pool will mean power outages, as state must draw 20 mnn units to achieve 24-hour power supply

The Centre has threatened the Andhra Pradesh government that it will deny access to the Central pool of electricity and power exchanges if it fails to open the letters of credit (LCs) for the wind and solar power producers having power purchase agreements (PPAs) within the next two days.

The move comes just days after the state power utilities filed petitions before the state electricity regulatory commission (APERC), asking for a steep reduction in tariffs in all wind and solar PPAs, even as the Centre took a strong view against the revision of these agreements.

Besides insisting on tariff reduction,