1000 MW up for grabs at 15c/KwH for Solar Energy Developers in Andhra Pradesh

The southern state of Andhra Pradesh is set to soon announce a policy under which it will sign PPAs for 1000 MW of solar energy capacity at a price of Rs 8.2/Kwh (~15c/Kwh). Note Andhra Pradesh Solar energy policy was announced some time ago in which significant concessions were given to solar project developers like no wheeling charges, RECs etc. This was done as the state was reeling under massive electricity cuts. Note Tamil Nadu another big neighbor has seen a huge rush of solar power projects after making solar power mandatory for industrial and commercial consumers across  the state. Note the electricity situation in India is quite pathetic with the southern states in the worst state. This has made the governments to look at urgently augmenting their electricity capacities through green energy. AP is looking to raise tariffs for biomass power which has become non-profitable in India. The tariff being discussed is Rs 8.2 which is decent as solar panel prices in India have come down rapidly due to global capacity glut. It is possible to source Chinese solar panels of decent quality in bulk at prices as low as 65c/watt.

Andhra Pradesh Solar Policy

There will be no wheeling and transmission charges for wheeling of power generated from the Solar Power Projects, to the desired location/s for captive use/ third party sale within the state through 33 KV system subject to industries maintaining their demand within its contracted demand Cross subsidy surcharge shall not be applicable for Open Access obtained for third party sale within the state subject to the industries maintaining their demand within its contracted demand with the DISCOMs.

All Solar Power projects will be exempted from paying Electricity Duty for captive consumption and third party sale within the state. All projects developed with the above incentives will also be eligible for REC benefits. Deemed injection into the grid for in-house captive solar generation plant (in the same premises) will be considered for issue of REC. Solar projects will get refunds on value-added tax paid for equipment and on land duty and registration charges for sites. Fast Track Approval Process permits to build grid connections within 21 days. These incentives will be in force for a period of seven years from the date of implementation. New and Renewable Energy Development Corporation of A.P. Ltd (NREDCAP) shall be the State Govt. Nodal Agency for clearance, facilitation and implementation of the proposed Solar Power Policy. These incentives will be available for 7 years for solar power plant developers building a solar panel plant till June 2014.

Tamil Nadu Solar Gold Rush

Industries in Tamil Nadu are looking to invest in solar panel arrays for their factories and offices as the Government has made it mandatory for HT customers to buy/generate solar power for 3% of their requirements in 2013 which will go up to 6% by 2016. While some companies are complaining about the high cost of solar energy installations, some foreign auto majors like Nissan, Daimler have started to invest in solar panels. Note for some companies solar energy makes sense given the massive power cuts being seen in TN. Besides installing solar panels gives green brownie points to these companies which are major polluters, courtesy their carbon emitting products. Daimler Chrysler is planning to use solar modules to power its logistics warehouse which is coming up in TN while Nissan Renault plans to use solar heater and solar panels to supply energy to its offices.

Hindu

Walking the extra mile to encourage renewable energy projects, the government has decided to invite tenders from private parties to establish solar power plants to the tune of 1,000 MW with the arrangement to buy back the electricity generated by them.A unit price of Rs. 8.2 is tentatively fixed for purchase of the power generated by these plants, subject to approval by AP Electricity Regulatory Commission. Now, over Rs. 17 per unit is being paid on purchase of solar energy from the first batch of these plants.However, only a meagre 23 MW capacity is available under these plants now as against 95 MW sanctioned by the Centre to the State under Phase I and II of Jawaharlal Solar Energy Mission (JSEM).