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According to Reuters, Solar Energy Corporation of India (SECI) approached the Andhra Pradesh state government on September 15, 2021, to inquire about their intentions to sign India’s largest renewable energy contract.
State energy regulators had clearly stated that there is no short-term need for solar power in a 10-year forecast, suggesting to move towards other sources of energy.
A day after SECI approached the Andhra Pradesh government, the deal was approved by the Cabinet of Chief Minister YS Jagan Mohan Reddy.
Reuters spoke to a former state power regulator, who said SECI’s approach to the state government and regulatory approval by the Andhra Pradesh Electricity Regulatory Commission (APERC) for the 7,000-megawatt deal was unusually fast.
The same deal is under scrutiny by US prosecutors who claim a $228 million bribe was paid to government officials.
According to Reuters' analysis of contract terms, if the Adani deal is approved, the state treasury will bear the direct cost of solar bills of hundreds of millions of dollars per year. Once the electricity supply is fully operating, Adani will receive yearly payments that are about equal to the state's expenditures for the previous fiscal year's social security and nutrition programs.