Andhra Pradesh Solar Policy 2012
Clean and Green Energy – Development of
Solar Power in Andhra Pradesh – Andhra Pradesh Solar Power Policy – Order –
Issued.
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ORDER:-In order to promote generation of power from Solar Power,
the State Government hereby introduce the Andhra Pradesh Solar Policy 2012, as mentioned
below :-
ANDHRA PRADESH SOLAR POWER POLICY
-2012 PREAMBLE
Solar power is one of the important renewable energy
sources. GoI have recognized the importance of Solar Energy as one of the
future sources of energy and accordingly National Solar Mission was launched on
14.11.2009, under the brand name “Solar India” with an objective to maximize
generation of power from solar energy. Andhra Pradesh is one of the suitable
locations for installing Solar Power Projects due to the following favorable
factors:
• Availability of about 300
sunny days in a year with solar insolation of 5.5 to 6 KWh/m².
• Availability of widespread
electric grid network, which facilitate Projects with easy connectivity.
• Growing energy demand in the
State.
The present situation prevailing in the State with regard
to substantial gap between the demand and supply position of power calls for
taking immediate measures to augment production of energy through nonconventional
sources on fast track. Keeping in view the conducive environment present to
encourage solar power and also the fact that the production of solar power is
less time
consuming, it has been decided to formulate the following
policy to encourage generation of solar power in the State.
OBJECTIVE :
Main objectives of the Solar power policy are:
1. To encourage, develop and promote solar power
generation in the State with a view to meet the growing demand for power in an
environmentally and economically sustainable manner.
2. To attract investment in the state for the stablishment
of solar power plants.
3. To promote investments for setting up manufacturing
facilities in the State,which can generate gainful local employment.
4. To promote the Off-Grid Solar applications to meet the
power needs on Stand-alone basis.
5. To contribute to overall economic development,
employment generation and improvement in public services by provision of
electrical energy for various needs.
6. To encourage Decentralised, Distribution Generation
System in the State to reduce T&D losses.
1. Title
The policy shall be known as the “Andhra Pradesh Solar Power Policy – 2012 ”
2. Operative Period
The policy shall come into operation with effect from the
date of issuance and shall remain applicable till 2017.
3. Eligible Developers
All registered companies, Central and State power
generation / distribution companies and public / private sector solar power
project developers will be eligible for setting up of Solar Power Projects,
either for the purpose of captive use and/or for selling of electricity, in accordance
with the Electricity Act-2003, as amended from time to time.
The entity desiring to set up Solar Power Project, either
for sale of power and/ or for captive use of power within the state, shall
submit a proposal to the Nodal Agency.
4. Installed capacity
a) Utility Grid Power Projects for Captive
use /direct sale to 3rd Party/States other than A.P. State
The State will promote Solar Power Developers to set up
Solar Power Plants for captive use or sale of power to 3rd party/States other
than Andhra Pradesh.
b) Utility Grid Power Projects for sale through
RE (Solar) Certificate Mechanism
The State will promote Solar Power Developers to set up
Solar Power Plants for sale through RE (Solar) Certificate mechanism. The Solar
Power Developers will be required to apply for accreditation to the State
Accreditation
Agency and thereafter to Central Agency for registration
and issuance of RE (Solar) certificate under REC mechanism as per
order/regulations of appropriate
Commission issued in this regard. SLDC will give
clearance for REC applications within 15 days from the date of application. The
Power generated from these
power projects shall be purchased by AP DISCOMs at Pooled
Cost of Power Purchase as determined by A.P.E.R.C. from time to time. The Solar
Power
Developers will sell RE (Solar) Certificates as per the
regulations/orders of A.P.E.R.C.
5. Open Access for Third Party Sale
If the Open Access is granted to any developer, they
shall pay the applicable Open Access charges and losses as approved by APERC
from time to time for sale to third party outside the State.
6. Wheeling and Transmission Loss
Producer will bear the wheeling and transmission losses
as per actual.
7. Banking
Banking of 100% of energy shall be permitted from January
to December of that year. There will be no banking for energy produced being
consumed on the same day. However, banked units can not be consumed /redeemed
between February to June and also during peak hours i.e. 6.30 PM to 10.30 PM.
Developer will be
required to pay 2% of the banked energy towards banking
charges. The energy unutilized by December of that year gets lapsed.
8. Incentive:
In order to encourage the immediate production of Solar
Power to reduce the present gap in demand and supply position of power and
provide industries with a possibility to utilise the power produced through
solar power, following incentives will be extended to those solar power
Developers who commission their solar plant by June 2014. These incentives will
be in force for a period of
seven years from the date of implementation.
a. Wheeling and Transmission Charges
There will be no wheeling and transmission charges for
wheeling of power generated from the Solar Power Projects , to the desired
location/s for captive use/ third party sale within the state through 33 KV
system subject to industries maintaining their demand within its contracted
demand. However, wheeling and transmission charges for wheeling of power
generated from the Solar Power Projects for sale outside the state will be as
per APERC regulations
b. Cross Subsidy charges
Cross subsidy surcharge shall not be applicable for Open
Access obtained for third party sale within the state subject to the industries
maintaining their demand
within its contracted demand with the DISCOMs. It is not
applicable for captive use.
c. Electricity Duty exemption
All Solar Power projects will be exempted from paying
Electricity Duty for captive consumption and third party sale within the state.
d. VAT refund
VAT for all the inputs required for solar power projects
will be refunded by the Commercial Tax Department.
e. Refund of Stamp Duty and Registration
charges
Industries Department will provide incentive in terms of
refund of Stamp Duty and Registration charges for land purchased for setting up
solar power project.
f. REC
All projects developed with the above incentives will
also be eligible for REC benefits. Deemed injection into the grid for in-house
captive solar generation plant (in the same premises) will be considered for
issue of REC.
9. Grid Connectivity and Evacuation
facility
The power generated from a Solar Power Project shall be
injected at an appropriate voltage to the nearest sub-station of the AP Transco
/ Distribution Licensee.
The evacuation line from interconnection point to grid
substation shall be laid by the APTRANSCO or DISCOM at the cost of the project
developer. However, if the project developer wishes to lay evacuation line by
themselves,
they can do so by paying the supervision charges to
APTRANSCO/DISCOM.
APTRANSCO/DISCOMs will ensure the technical feasibility
for evacuation is granted within 21 days of applying.
10. Land
It is the responsibility of the Project Developer to
acquire the land required for the project.
11. Restriction on use of Fossil Fuels
No fossil fuel viz., Coal, gas, lignite, naphtha, wood
etc., shall be allowed to be used in a Solar Power Plant.
12. Reactive Power Charges
The drawl of Reactive Power by the solar power plant
shall be charged as decided by the APERC.
13. Nodal Agency
New and Renewable Energy Development Corporation of A.P.
Ltd (NREDCAP) shall be the State Govt. Nodal Agency for clearance, facilitation
and implementation of the proposed Solar Power Policy.
14. Project Monitoring
A “High Level Committee” constituted with the following
members will monitor the progress of implementation of the Solar Power projects
cleared under the proposed policy:
1. Principal Secretary, Energy Department
2. Principal Secretary, Industries and CIP
3. V.C.& Managing Director, NREDCAP (Member-Convener)
4. Chairman and Managing Director, APTRANSCO
5. Commissioner, Commercial Tax.
6. One C&MD of DISCOMs by rotation ( One Year).
7. Representative of Finance Department.
8. Representative of FAPCCI and CII.
9. One representative from Solar Power Developers
If any difficulty arises in giving effect to this policy,
the High Level Committee is authorized to issue clarification as well as
interpretation to such
provisions, as may appear to be necessary for removing
the difficultly either on its own motion or after hearing those parties who
have represented.
15. Review
State Govt. will undertake review of this policy after a
period of two years.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA
PRADESH)
MRUTUNJAY SAHOO
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