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Andhra Pradesh (AP) Solar Policy Highlights_07.02.2019


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Andhra Pradesh has recently published new solar policy which focuses majorly on local solar manufacturing unit, solar park & associated incentives. It also introduces Feed-In Tariff (FiTs) for small scale projects (upto 5MW).

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Andhra Pradesh (AP) Solar Policy Highlights_07.02.2019

  1. 1. Andhra Pradesh Solar Policy 2018 Sl.No Clause Interpretation 1 Policy AP Solar Power Policy 2018 2 Effective Date 3rd January 2019 3 Target Sale to Discom Solar Park Solar Pump Set  Overall target of 5000 MW from solar power project by 2023  2000 MW of solar power shall be procured by Discom in next 5 year  4000 MW of initial target for Solar Park  50,000 solar powered pump sets will be operational in the state in next 5 year with subsidy 4 Objectives  Solar park in the state with full infrastructure  solar powered agricultural pump sets  promote local manufacturing 5 Operative Period  Effective from the date of issuance till period of 5 years 6 Eligibility for Incentives or Benefits  The Project(s) developed during Operative Period of this Policy for 10 years from the date of commissioning. 7 Nodal Agency Responsibilities New and Renewable Energy Development Corporation of A.P. Ltd (NREDCAP)  obtaining revenue land  facilitate power evacuation and/ or Open Access  facilitate water allocation  Facilitate & coordinate in obtaining necessary clearances, approvals, grants and subsidies. Gensol Engineering Pvt. Ltd Solar Policy Review 2019: Andhra Pradesh
  2. 2. 8 Incentives for Solar Manufacturing from Government  Govt. lands shall prioritize for solar parks on long term lease basis  Exemption from electricity duty for a period of ten (10) years  Provision for single desk statuary clearances will be provided 9 Transmission & Wheeling Charges  Exempted, only for connectivity to the nearest Central Transmission Utility (CTU) for inter- state 10 Energy Banking & Accounting  Banking of 100% of energy will be permitted during all 12 months of the year, based on the feasibility and prior approval of APTRANSCO / APDISCOMs.  Banking charges will be adjusted in kind at 5% of the energy delivered at the point of drawl.  The unutilized banked energy shall be considered as deemed purchase by Discom at 50% of the Average Pooled Power Purchase Cost as determined by the APERC for the applicable year.  The payment for the deemed purchase of un-utilized banked energy shall be capped to 10% of the total banked energy during the applicable year. However, for Solar Wind hybrid Projects utilized power shall be procured at 75% of the Average Pooled Power Purchase Cost for the applicable year. 11 Grid Connectivity & Evacuation  The Eligible Developer shall bear the entire cost of construction of power evacuation facilities from the project upto the interconnection point and/or upto APTransco / Discom(s) substation 12 Supervision Charges  Exempted from paying the Supervision charges to APTransco/Discom(s) only in case of transmission of power from State Transmission Utility (STU) to Central transmission utility (CTU) 13 Deemed Public Private Partnership (PPP)  Deemed PPP status will be provided for solar projects under category Sale of power to AP Discom(s)
  3. 3. 14 Land  Deemed Non-Agricultural (NA) status for the land where Solar Power Projects will be accorded, on payment of applicable statutory fees  Responsibility of the project developer to acquire the land required for the project  NREDCAP will pay the land cost as decided to the revenue authorities @ 10% of the market value for a period of 10 years.  NREDCAP will collect the lease rentals for 25 years period @10% of the value of land with 10% increase in every 5 years block period 15 Must Run Status  Injection from power from solar projects 16 Renewable Power Purchase Obligation (RPO)  The Obligated Entities as per the RPPO Regulations of APERC, are eligible for adjusting the power generated from rooftop projects towards their obligation to meet RPPO provided necessary metering is arranged for measuring the solar power as per the regulations. Further, the RPPO is not defined for the ground mounted project towards obligated entities 17 Administrative Approval  Eligible Developers has to pay following fee along with application: -INR 1000 upto 5kWp -INR 5000 for 5kWp -100kWp -INR 10000 for 100kWp- 1000kWp -INR 25000/MW above 1000kWp - INR 25/kW for assistance required SNA for clearances (exempted for solar parks) 18 Pollution Clearance  Exempted 19 Scheduling & Forecasting  Applicable as per APERC (Commission Forecasting, Scheduling and Deviation Settlement of Solar and Wind Generation) Regulation, 2017. 20 Project Completion Timeline - 21 Security Deposit -
  4. 4. 22 Liability Charges - 23 Performance Obligation -