Centre grants Rs 500 Cr for AP's 2500 MW Solar Parks

Hyderabad, Oct 24 (INN): In a latest development, enthused with 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 as 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 Nara Chandrababu Naidu said.

While interacting with the officials during teleconference in connection with the huge response received from the developers on solar bidding, with Energy Secretary Ajay Jain and CMD of APTRANSCO and MD of APGENCO K Vijayanand, who are camping at Vizag, attending cyclone restoration works, 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 stakeholders.

Ajay Jain and Vijayanand appraised the Chief Minister that in response to the AP solar bid for procurement of 500 MW Grid connected solar photo voltaic projects in Andhra Pradesh, 50 prospective solar developers bidded for 1296 MW capacity. The financial bids of 49 Qualified bidders for the capacity of 1291 MW are opened by APTRANSCO.

The range of first year tariff ordered by the bidders is from Rs.5.25 to Rs.8.08 per unit with 3% escalation every year up to 10 years and there is no escalation after 11th year. With the tariff up to Rs.5.99 per unit, the cumulative capacity offered by the bidders is 619 MW against the bid capacity of 500 MW.

The World's largest solar company M/s. First Solar Power India Pvt. Ltd offered lowest tariff of Rs.5.25 per Unit for the capacity of 40 MW in 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 Anathapur District and bidder for the capacity of 580 MW and followed by Chittur district 273 MW and Kurnool District 272 MW.

There is response in coastal are also in Vizayanagaram and Visakhapatnam with lowest tariff of Rs.5.94 per unit and Rs.5.99 per unit. The notable bidders M/s. Welspun Renewables Energy Pvt. Ltd. bidded for 345 MW followed by M/s. Acme Clean Tech Solutions Ltd for 160 MW capacity.

Further G Sai Prasad, Secretary, Power (CMO), who has participated in teleconference, informed the Chief Minister that the Government of India has agreed to provide a grant (free of cost/non repayable) of Rs 20 lakhs per MW i.e. Rs.500 Crores for the development 2500 MW solar park in the state as requested by AP Government.