Andhra Pradesh is able to produce Surplus Power even in the peak Summer. The state is successfully supply 24 hours power to domestic and industrial users right now. In the wake of this, the Power companies are gearing up to cancel some of the short term PPAs. Usually power through short term PPAs is costly and cancelling them will ease financial burden on the Power companies.
Since Telangana left out its share from Krishnapatnam project, AP will have more and more power to meet even peak demands. AP used to buy 1680 MW Power through outside sources. The Power companies already withdrew 980 MW PPAs.
They are very soon planning to withdraw another 700MW PPAs. But had to continue the remaining 300MW PPAs as withdrawing them will invoke big penalties. Andhra Pradesh will be able to sell Power to others very soon, may be from 2015-16.
