Andhra Pradesh announces new wind-solar hybrid policy

The government of Andhra Pradesh has recently announced a new wind-solar hybrid policy as the state targets to achieve 18000 MW of renewable capacity by the year 2021-2022. The broad objective of the policy is to provide a framework for the promotion of large grid-connected wind-solar PV systems for optimal & efficient utilization of transmission infrastructure and land, reducing the variability in renewable power generation and thus achieving better grid stability.

The key points of the policy are as below:

  • The policy will be applicable for a period of five years from the date of issuance.
  • The policy intends to procure 5,000 MW of contracted capacity under the five-year timeline.
  • The policy is applicable to new wind-solar projects as well as the existing wind/solar PV projects via hybridization.
  • The rules and eligibility of the categories are specified in the policy.
  • 100% banking of energy is allowed throughout the year based on the feasibility & approval from the TRANSCOs & DISCOMs.
  • Banking charges will be adjusted in kind at 5% of the energy delivered at the point of drawal and the banking will be possible between April to March.
  • Energy settlement will be done on a monthly basis & the unutilized energy will be purchased by the DISCOMs at 75% of the APPC as per the APERC rules.
  • Hybrid projects developed by the manufacturers will be allowed to sell the power to discoms via: (i) project specified tariff determined by APERC, (ii) at APPC under REC mechanism by availing RECs, (iii) via a transparent bidding process.
  • Transmission/distribution charges exempted up to 50% of the applicable charges for wheeling of power generated.
  • No transmission charges for connectivity to the nearest Central Transmission Unit (CTU) via State Transmission Unit (STU) network for inter-state wheeling of power.
  • For existing wind/solar plants applying for hybridization can avail all the incentives w.r.to previous policies balance operative period.
  • 50% of applicable Electricity duty shall be exempted for captive consumption, sale to
    DISCOMs and third party sale provided the source of power is from wind – solar hybrid
    power projects set up within the State.
  • 50% of the Cross subsidy surcharge shall be paid for third party sale provided the source of power is from Wind- Solar Hybrid Power Projects setup within the State.

Currently, Andhra Pradesh has RE installed capacity of 7229.8 MW as on November 2018, as per CEA.

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