Adani US Bribery Case: Power Regulator Backs Off as AGEL Gets Andhra Solar Project

The Central Electricity Regulatory Commission (CERC) has declined to intervene in the transfer of a 2,333 MW solar capacity from Azure Power India to Adani Green Energy Limited (AGEL), which forms part of a larger 7,000 MW renewable energy project intended for Andhra Pradesh. The project has come under scrutiny amid US bribery allegations involving billionaire and Adani Group's chief Gautam Adani.

In a 23-page order on April 17, the CERC stated that it lacked jurisdiction over the matter.

How Azure Power Exited the Deal

In December 2021, the Solar Energy Corporation of India (SECI) and the Andhra Pradesh discoms signed a power purchase agreement, under which they were supposed to provide 7,000 megawatts of electricity to them.

Out of these, 4,666 MW was allocated to AGEL and 2,333 MW to Azure Power.

SECI signed separate power purchase agreements (PPAs) with both developers, and the arrangement was approved by CERC in April 2022.

However, Azure Power later withdrew from the agreement, and its share was reassigned to AGEL.

In December 2023, SECI signed an amended PSA with the Andhra Pradesh discoms, transferring Azure's portion to AGEL, thereby making the latter responsible for the entire 7,000 MW capacity.

SECI subsequently approached CERC to officially record this updated PSA.

In its petition, SECI requested the Commission to take note of a series of agreements: 11 PPAs dated December 26, 2023, and three project allocation agreements dated March 13, 2024, executed with AGEL for the combined 2,333 MW capacity. It also sought acknowledgment of the updated PSA dated March 1, 2024, signed with Andhra Pradesh discoms and the state government.

“We note that the petitioner has not approached the Commission under Section 79(1)(b) of the Electricity Act for tariff regulation. Instead, the only relief sought is for the Commission to acknowledge the replacement of one developer with another,” the CERC order stated.

It added that SECI had not cited any statutory provision authorising the Commission to validate such a substitution, nor had it formally requested approval for the transfer from Azure to Adani.