Rs 500 Crores By Centre For 2,500 MW AP Solar Park

Enthused by the response from solar power developers for establishing solar power plants in the state, the Andhra Pradesh Government has decided to expedite the Action Plan for solar development which aims to make Andhra Pradesh a solar hub in the country.

"As part of this plan the government has targeted achieving 9,150 MW capacity through renewable energy and realizing substantial energy savings through energy efficiency projects by FY 2018-19, which will go a long way in making AP a solar hub and a centre of excellence for the country," Chief Minister Chandrababu Naidu said.

While interacting with officials during a teleconference in connection with the huge response received from developers in the solar power bidding, Naidu instructed the officials to take all steps to expedite the Action Plan for the development of renewable energy sources, in particular solar and wind, which would be immensely useful to the state and the stakeholders.

Energy Secretary Ajay Jain, and CMD of APTransco and MD of APGenco K Vijayanand, who are camping at Vizag attending cyclone restoration works, appraised the Chief Minister via the telecon that in response to the AP solar power bid for procurement of 500 MW grid-connected solar photo-voltaic projects, 50 prospective solar developers bid for a total of 1,296 MW. The financial bids of 49 qualified bidders, for a total capacity of 1,291 MW, were opened by APTransco.

The range of first year tariff quoted by the bidders was Rs 5.25 to Rs 8.08 per unit, with 3% escalation every year up to 10 years and no escalation from the 11th year.

For tariffs up to Rs 5.99 per unit, the cumulative capacity offered by the bidders was 619 MW, against the bid capacity of 500 MW. The world's largest solar company, First Solar Power India Pvt Ltd, offered the lowest tariff of Rs 5.25 per unit for a capacity of 40 MW in the Ananthapur district. The levelised tariff worked out to Rs 6.17 per unit, which is lower than the earlier solar tariff (Rs 6.49 per unit).

Solar bidders preferred the Ananthapur district and bid for a capacity of 580 MW there, and followed by 273 MW for the Chittoor district and 272 MW for the Kurnool district.

Vizainagaram and Visakhapatnam received bids with lowest tariffs of Rs 5.94 and Rs 5.99 per unit respectively. The notable bidders were Welspun Renewables Energy for 345 MW, and Acme Clean Tech Solutions for 160 MW.

G Sai Prasad, Secretary, Power (CMO), who participated in teleconference, informed the Chief Minister that the Government of India had agreed to provide a grant (free of cost / non-repayable) of Rs 20 lakhs per MW - i. e. Rs 500 crores - for the development of a 2,500 MW solar park in the State, as requested by the AP government. (INN)