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Adani Solar Deal Under Bribery Scrutiny Approved Despite Officials’ Warnings

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The approval of a $490 million solar power deal in Andhra Pradesh, linked to Adani Green and now under U.S. bribery scrutiny, occurred despite warnings from finance and energy officials, according to records and interviews reviewed by Reuters.

The deal began on September 15, 2021, when the Solar Energy Corporation of India (SECI) unexpectedly approached the state government with an offer for India’s largest renewables contract. Despite Andhra Pradesh’s 2019 energy forecast showing no immediate need for solar power, the state cabinet led by then-Chief Minister YS Jagan Mohan Reddy gave the deal preliminary approval the next day.

By December 1, 2021, Andhra Pradesh signed a procurement agreement with SECI for 7,000 megawatts of solar power, 97% of which would go to Adani Green. The unusually swift approval—57 days from SECI’s approach to regulatory consent—has drawn attention, with critics describing the pace as highly irregular.

The U.S. Department of Justice indicted Adani and seven others in November, alleging that $228 million in bribes were offered to influence Andhra Pradesh’s decision to purchase the solar power. While Adani Group has denied all allegations as “baseless,” state and federal documents reveal that political leaders ignored financial warnings.

Finance and energy officials had raised concerns over the deal’s cost and timing. The finance department warned on October 28, 2021, that falling solar prices would make future contracts cheaper and questioned the need for a 25-year agreement, given that supply would begin only in 2024. Additionally, the department noted Andhra Pradesh had significant leverage as the buyer.

Despite this advice, the cabinet proceeded with the deal, “overruling the finance remark,” according to meeting minutes. Andhra Pradesh agreed to a rate of 2.49 rupees per kilowatt-hour, but analysts suggest the price will rise by as much as 23% after taxes and duties.

Delays in grid availability have postponed the supply date beyond 2024, according to Adani Green. Meanwhile, the new government under Chief Minister N. Chandrababu Naidu is considering suspending the agreement due to the U.S. indictment of Adani. A decision is expected by year-end.

Should the deal proceed, Andhra Pradesh’s treasury faces hundreds of millions of dollars in annual payments, equivalent to its social security and nutrition program spending for the previous fiscal year.

 

Kazakhstan Votes on First Nuclear Power Plant Amid Public Concerns and Energy Needs

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Kazakhstan held a referendum on Sunday to decide whether to build its first nuclear power plant, a move promoted by President Kassym-Jomart Tokayev as the country seeks to reduce its reliance on coal. While the government argues that nuclear energy will help phase out polluting coal plants and secure energy supply, the proposal has faced public opposition due to the Soviet Union’s nuclear legacy and fears of potential Russian involvement.

Despite the government’s push for the project, critics worry about the safety hazards and environmental impact. Vadim Boreiko, a popular blogger, suggested that the decision to build the nuclear plant with the involvement of Rosatom, Russia’s state nuclear company, has already been made and that the referendum serves merely to validate the decision. This view reflects public mistrust, particularly due to Kazakhstan’s history with nuclear testing during the Soviet era, which left many regions uninhabitable and created long-lasting health issues.

The proposed plant would be built near Lake Balkhash in the village of Ulken, where opinions among locals remain divided. While some residents hope the project will bring jobs and economic growth, others fear it may contaminate the lake’s water.

Despite Kazakhstan’s large natural gas reserves, the country remains highly dependent on coal-powered plants, which provide the bulk of its electricity. Many of these facilities are aging, and Kazakhstan has had to import electricity from Russia to meet demand. The government argues that nuclear power, combined with renewable energy sources like solar and wind, is essential for the country’s energy future, particularly given Kazakhstan’s status as one of the world’s largest uranium producers.

However, critics argue that gas-powered plants could meet the country’s energy needs without the risks associated with nuclear energy. Gas is less polluting than coal and does not carry the same potential for nuclear accidents.

The legacy of Chornobyl and the hundreds of nuclear tests conducted by the Soviet Union on Kazakh soil have left many people wary of anything related to nuclear power. The health and environmental consequences of those tests are still being felt today, with large areas rendered uninhabitable and health issues persisting among those who were exposed.

The referendum will only be considered valid if more than 50% of registered voters cast their ballots. Tokayev, who publicly cast his vote in the capital Astana, stressed that he is open to multiple international companies participating in the project, stating that an international consortium could provide the most advanced technologies for the plant.