The renewable energy sector is poised to see a major fillip in Andhra Pradesh and Telangana with both the States seeking to accelerate the implementation of solar power projects.

So far barely about 150 MW capacity has been installed in both the States. However, with new Governments, the solar sector, in particular, is poised for major boost.

Both the States are attempting to encourage projects of large size ranging from 500 MW to 1,000 MW in designated solar power parks. With both keen to encourage solar PV projects, and encouraged by the involvement of NTPC and Solar Energy Corporation of India Ltd, the latter a nodal agency for facilitating setting up solar projects, in about 12-18 months, we may see some of these large projects coming up as planned.

In Andhra Pradesh, the total installed capacity in the renewable energy sector, particularly solar and wind, is close to 1,000 MW (about 972.5 MW). Of this, wind power projects account for 881 MW and solar power units about 100 MW (91.5 MW). However, even some of the projects that have been installed are still faced with some last mile issues, such as wheeling and grid connectivity. They are being resolved.

In the case of Telangana, it has total installed capacity of about 350 MW (332 MW). Of this, wind farms account for a big chunk of 284 MW and solar power units of about 50 MW (49.75 MW). Since the new State has been formed and Transmission Corporation and Discoms have been divided, it has also invited expression of interest for procurement of 500 MW solar power plants, identifying the Mahabubnagar for development of a large solar park in collaboration with Solar Energy Corporation. It has also set apart about 7,500 acres or the park.

Both the State Governments had floated tenders for procurement and installations of solar pumps sets in the agriculture sector as a part of the Centre’s move to encourage solar PV installations. While the tenders are yet to be made public, the Telangana Government has decided to cancel the tenders and is likely to call for fresh tenders.

Attempts by the unified state of Andhra Pradesh in encouraging renewable energy have not met with much success. This time, the situation is likely to be much different, sources in the sector point out.

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