In the proposed solar policy the gap in the tariff decided by the Andhra Pradesh Electricity Regulatory Commission and the quoted tariff will be met by the State budget.

The Andhra Pradesh Government has decided to allow solar photovoltaic power plant developers to avail themselves the facility of Renewable Energy Certification for solar power generation.

The Government proposes to invite competitive bids with upper ceiling on cost. However, developers will be allowed pooled cost plus the facility to access renewable energy certificates.

Following a review meeting of the power sector, the Andhra Pradesh Chief Minister, Mr N. Kiran Kumar Reddy, said in the proposed solar policy the gap in tariff decided by the Andhra Pradesh Electricity Regulatory Commission and the quoted tariff will be met by the State budget.

While the State has sanctioned 97.5 MW of solar plants, about 26.5 MW has been commissioned thus far. The State regulator has permitted a tariff of Rs 17.91 a unit with AP Discoms offering Rs 5.50 and Ireda Rs 12.41 a unit. However, for new plants the new approach of pooled cost and certification approach has been adopted.

The State is keen to ensure that the farm sector gets seven hours of power supply during kharif season operations, even if this means power cuts to some sections including industrial consumers.

With the State faced with a shortfall of 24 million units per day, it is in the process of finalising long-term bids for procurement of 2,000 MW on long- term basis.

vrishi@thehindu.co.in

(This article was published on July 2, 2012)
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