CERC Declines to Intervene in Transfer of Azure's 2333 MW to Adani Green Energy

The Central Electricity Regulatory Commission (CERC) has declined to intervene in the transfer of 2,333 MW of capacity from Azure Power India to Adani Green Energy Limited (AGEL) in the 7,000 MW solar power project in Andhra Pradesh, a matter central to the alleged bribery charges against Gautam Adani.

The Central Electricity Regulatory Commission (CERC), the primary regulator of India's power sector, stated in its 23-page order that it lacked jurisdiction over the matter. In December 2021, a power supply agreement (PSA) was signed between the Solar Energy Corporation of India (SECI) and the Andhra Pradesh discoms for a total of 7,000 MW of power. Of this, 4,666 MW was to be supplied by Adani Green Energy Limited (AGEL), while the remaining 2,333 MW was assigned to Azure Power Limited. Subsequently, separate power purchase agreements (PPAs) were executed between SECI and AGEL, as well as between SECI and Azure. The agreements were approved by the CERC in April 2022. However, Azure Power later withdrew from the agreement, and its portion of 2,333 MW was transferred to AGEL.

In December 2023, a supplemental Power Supply Agreement (PSA) was signed between SECI and Andhra Pradesh, transferring additional capacity and raising the total power to be supplied by AGEL to 7,000 MW. SECI had requested the Central Electricity Regulatory Commission (CERC) to formally "take on record" this supplemental PSA. The CERC’s order provides significant relief to the government of N. Chandrababu Naidu in Andhra Pradesh. Despite Naidu's ambivalence about operationalizing the power purchase agreement, this order allows the state to avoid committing to the purchase of at least 2,333 MW without prior CERC approval.