Govt. doles out incentives for solar power projects.

With an ambitious target of achieving capacity addition of 5,000 MW through solar energy, the State government has announced a slew of incentives for the solar power developers eager to set up their projects in Andhra Pradesh.

The government, after elaborate consultations with energy officials and experts, has announced a comprehensive solar power policy applicable for five years. Projects commissioned during the period would be eligible for all incentives for 10 years from the date of commissioning, unless the period is specifically mentioned for any sop.

The policy mentioned the advantages of the State including availability of 300 sunny days with solar insolation of more than 5kWh/m2/day.

The State has among the best performing power distribution companies in the country with an efficient evacuation infrastructure that can facilitate distributed power generation.

The policy aims at developing solar parks with necessary infrastructure to encourage developers to set up units. The government will promote local manufacturing facilities which will generate employment.

Solar power projects will also be promoted for sale of power to distribution companies wherein it is planned to procure around 2,000 MW in a phased manner. The Discoms will enter in power purchase agreements for 25 years with developers who will be selected on competitive bidding.

Producers will be encouraged to set up projects for captive use within the State or third party sale within and outside the State. These projects will also qualify for renewable energy certificates subject to applicable regulations/guidelines issued by the appropriate commission.

For solar parks, the policy aims at engaging special purpose vehicles to development infrastructure and its management. The SPV will formulate policy in respect of land allotment and sharing of development cost by producers and manufacturers in addition to development of initial infrastructure from the funds allocated by the Central and State Governments.

The cost to serve for the projects would be determined by the AP Electricity Regulatory Commission every year.

For instance, the average cost to serve approved by the APERC for 2013-14 was Rs. 5.25 per unit and this facility would be extended for a period of 25 years for developers who set up rooftop projects within the operating period of the policy.

The Hindu