AP to finalise bids for 10,000 MW solar power

Five companies have filed 24 bids before the December 28 deadline for the 10,000 MW solar power project planned by the Andhra Pradesh Government.

The Government has proposed this project to provide free power supply to the agriculture sector in the State.

Officials are now gearing up to open the bids and thereafter a reverse tendering process will be initiated. The entire process is scheduled to end by February 2021.

The Government has taken up the 10,000 MW solar power project with transparency by backing it with the enactment of the Judicial Preview Act. The Government had prepared the documents and invited tenders by following the guidelines of the Union Ministry of New and Renewable Energy.

The documents were sent to the Judicial Preview Committee, headed by a Retired High Court Judge, who examined them. Later, they were uploaded to the website and kept there for 28 days for public scrutiny and suggestions and then finalised.

The State Government has conceived the project taking into consideration the increase in consumption cost of power in the future and to control the expenditure on providing continuous free power supply to farm sector. The Government aims to reduce the cost of agriculture and thereby increase the income of farmers.

The State has taken up the prestigious project by giving priority to maintain quality and transparency through use of solar energy in the next 30 years and thereby save ₹ 48,000 crore.

According to Andhra Pradesh Electricity Regulatory Committee’s (APERC) statistics, 12,221 million units of power is being consumed by 18.17 lakh by agriculture connections in the State. The Discoms are supplying 13,039 million units. The subsidy for agricultural connections has increased manifold in the past five years. While there are 18.37 lakhs agricultural connections in the State, the production capacity is only 8,354 MW. The State Government is paying the Discoms the entire cost of power subsidies to the farm sector.

The Government has allotted ₹ 8,354 crore for subsidy in the farm sector for 2020-21, which is more than double the allocation made for the purpose by the previous government.

In this backdrop, the Government, on February 2020, issued orders to AP Green Energy solar Corporation for setting up of 10,000 MW solar energy plant as 100% subsidiary of APGENCO. The plant will be transferred to APGENCO after purchase of power for 30 years. While Discoms are spending ₹ 4.68 per Kilo Watt hour now, the solar energy rates are gradually decreasing. The price of solar energy per unit is ranging between ₹1.99 and ₹2.43 in various States. It is estimated that the State Government can save up to ₹48,000 crore by use of solar energy for 30 years.

While the Government will lease 50% of Government lands at the rate ₹5 per acre, the remaining 50% lands are either private or assigned lands.

The Government will pay for the lease lands at the rate of ₹ 25,000 per acre per year. It expects to bring down the use of fossil fuel gradually by utilisation of solar power.

It is estimated that about 6,400 MW solar power will be generated through establishment of 10 solar parks initially.

The Government has fixed the PPA period at 30 years as per the guidelines of MNRE. The PPAs will come into force from the time plant starts commercial production. Later, it will be transferred to Andhra Pradesh Green Energy Corporation Limited.

The bid envisages a capacity Utilisation Factor of 18% during the period of implementation of PPAs. The Partner will take the quoted bid which will be counted in two phases. Commercial and technical bids will be taken up in the first phase and e-Reverse Auction will be conducted in the second phase.

Alongside, the State Government has already launched the YSR Rythu Bharosa scheme under which ₹13,500 is distributed to farmers every year for a period of five years.

With the Government taking up the 10,000 MW solar power project, the farmers can hope for a lasting solution to their electricity needs.

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