Adani solar project misses deadline, delays power supply to Andhra Pradesh

Adani Green Energy's solar project delays leave Andhra Pradesh waiting for power. The state is likely to receive only 1,000 MW by April 2025, much below the initial schedule of 3,000 MW

Adani Green Energy Ltd (AGEL) has not supplied any power to Andhra Pradesh from its solar power project, which is involved in a US indictment accusing Gautam Adani of bribery. The project, initially slated to provide 3,000 MW starting September 2024, remains inactive for the state two months past its deadline, according to a report by The Economic Times.  

  The revised schedule indicates that Andhra Pradesh will only start receiving 1,000 MW of power by April 2025, with further delays pushing the timeline for an additional 1,000 MW to January 2026. This falls short of the promised 6,000 MW by September 2025, reducing it to just 2,000 MW by early 2026, the report said.

 

Power sold at higher rates on exchanges

Despite the delays, AGEL has been selling power from the same project on power exchanges, fetching an average price of Rs 3.5 per unit — 40 per cent higher than the Rs 2.42 per unit agreed upon in its power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI). According to AGEL’s rating report, the project has commissioned 25 MW since March 2024, generating revenue at rates above expectations.   

AGEL cites incomplete transmission infrastructure as the cause of the delay. The Central Transmission Utility of India Ltd (CTUIL) has not yet made the required transmission systems fully operational. According to SECI’s revised schedule, 1,000 MW of transmission capacity is expected by April 2025, with an additional 1,000 MW scheduled for completion by January 2026, the report said.

  The report quoted an AGEL spokesperson as saying that the project’s scheduled completion dates have been adjusted to align with transmission readiness, and the company is committed to fulfilling the PPA obligations once the infrastructure is in place.  

Bribery allegations and power supply issues

The controversy escalated amid allegations by the US Department of Justice, which accused the Adani group of bribing Indian officials to mislead investors. Andhra Pradesh Chief Minister N Chandrababu Naidu has assured the public of action against any irregularities linked to the previous YS Jagan Mohan Reddy administration.   

A power transmission expert noted that even when connectivity exists, it may not always be reliable, complicating the supply process. This scenario allows companies to sell power on exchanges under SECI’s guidelines. AGEL confirmed that while awaiting full evacuation infrastructure, it is permitted to sell surplus power to the grid under PPA provisions, the report said.   

The company said that it is committed to supplying contracted power once transmission readiness is achieved.