With NTPC, NTPC Vidyut Vyapar Nigan Ltd and Solar Energy Corporation of India evincing interest to develop and facilitate large solar power parks in Andhra Pradesh, the State Government is gearing up to come out with a new policy which will provide escalation clause to make investments attractive.
A decision to the effect has been taken by the State Government and a meeting of developers of solar energy projects and wind energy companies was convened here on Saturday to interact with them and thrash out the irritants.
Ajay Jain, Secretary, Energy, Andhra Pradesh Government, said the State, with the support of the Central Government is keen to transform AP as a solar power generation hub, providing all necessary support through a new solar policy to be announced soon.
To boost the renewable energy sector, the government plans to facilitate installation of about 5,000 MW of solar power generation and 4,000 MW of wind generation capacity by 2019.
NTPC is set to sign up with the State for a 1,000-MW park, NVVNL will facilitate 1,000 MW and SECI has agreed to support these initiatives and in setting up of another 500 MW, for which bids have been invited.
Solar, wind energy projects
The State is also poised to secure Rs 500 crore from the Central Government to promote solar energy development. The Government has identified land in Ananthapur, Kadapa, Kurnool and Chittoor for solar and wind energy projects, Ajay Jain said.
Referring to the proposed solar policy, he said the accent of the policy would be on providing single window clearance for these projects and also providing an escalation clause of 3 per cent every year for 10 years. This is based on the feedback from developers and lack of response in the past when Rs 6.50 paise per unit was offered.
K. Vijayanand, Chairman and Managing Director of APGenco, said the developers have been asked to come out with proposals for 500 MW and another 500 MW will be offered for development.
The Government expects to commission 800 MW by next year, 1,200 MW, and 1,500 MW each in the second, third and fourth year of solar units, respectively.