Nodal Agency

The New and Renewable Energy Development Corporation of Andhra Pradesh.

Policy Period               

• 4^th January 2019 to 4^th January 2024 or until a new solar policy is announced, whichever is earlier.
• Solar power projects commissioned from 2019-24 shall be eligible for incentives declared under this policy for a period of 10 years unless the period is specifically mentioned.

Eligible Entities

• All registered companies, government entities, partnership companies/firms, individuals and consumers of APDISCOM(s) will be eligible for setting up of solar power projects within the state for sale of electricity/captive use, in accordance with the Electricity Act – 2003, as amended from time to time.

Types of Solar Power Plants and Target Capacities

Group

Description

Capacity

I

Through competitive bidding conducted by state DISCOMs

a) 5 MW and above.

b) Up to 5 MW.

II

Captive plants or third party sale

Not mentioned.

III

Solar Parks

4000 MW.

IV

Solar Rooftop Projects - Gross/Net Metering

Up to 1000 kWp at a single location.

V

Solar Pump sets

Not mentioned.

Incentives

• Exemption of transmission and distribution charges only for connectivity to the nearest Central Transmission Utility (CTU) via State Transmission Utility (STU).
• Banking of 100% of energy shall be permitted during all 12 months of the year, based on the consent of APTRANSCO/APDISCOMs.
• Intra-state open access clearance for the whole tenure of the project or 25 years, whichever is earlier, will be granted as per the APERC Regulations.
• All projects, including in-house or co-located solar projects with the above incentives, will be eligible for REC benefits.
• Eligible Industry Status for Solar PV projects under the schemes administered by the Industries Department including incentives.
• Provision of deemed PPP status for projects coming up under category of Sale of Power to APDISCOM.
• Deemed non-agricultural (NA) status for the land where solar power projects will be accorded, on payment of applicable statutory fees.
• ‘MUST-RUN’ status for solar power projects.
• Solar PV power projects will be exempted from any NOC/consent under pollution control laws from AP Pollution Control Board.

Energy Banking

• The banking year shall be from April to March and banking charges will be @5% of the energy delivered at the point of drawal.
• The unutilized banked energy shall be considered as deemed purchase by DISCOMs at 50% of APPC, as determined by APERC for the applicable year with payment at 10% of total banked energy in the year.

Solar Parks

• To be developed in private or public-private partnership mode.
• All necessary amenities related to power projects will be made available in solar parks.

Application Fees of PV Projects

Capacity in Units

Fees in Rs.[A1] 

Up to 5 kWp

1,000

5 kWp to 100 kWp

5,000

100 kWp to 1000 kWp

10,000

Per MW

25,000

• Additional Rs.25 per kW for single window support from Nodal Agency.
• Solar Parks developed by the government are exempted from such fees.

Objectives

• A minimum total solar power capacity addition of 5,000 MW in the next five years.
• To promote distributed generation.
• To develop solar park(s) with the necessary utility infrastructure facilities.
• To deploy solar powered agricultural pump sets.
• To promote local manufacturing facilities.

Provision
for Evacuation

• The eligible developer shall bear the entire cost of construction of power evacuation facilities from the project up to the interconnection point/DISCOM/Transco substation.

Land Provision under [A2] 

• To facilitate faster execution of projects.
• NREDCAP will allow the developer to start the construction after necessary undertakings including lease agreements.
• NREDCAP will pay the land cost as decided to the revenue authorities @10% of the market value for a period of 10 years and will collect lease rentals for 25 years @10% of the land value with a 10% increase in every 5 year block period from the a project developer from the date of commissioning of the project.

Monitoring Committee

• A high level committee will be created under the chairmanship of the Principal Secretary, Energy Department.
• The role of the Committee will be:
  • Removing difficulties
  • Addressing relevant issues
  • Interpreting Policy provisions

Solar Manufacturing

Promoting solar manufacturing so as to develop a solar eco-system and create job potential in the state. The following incentives shall be applicable to new manufacturing facilities and equipment, and ancillaries related to solar power projects only:

• Priority allotment of government land for solar parks on long term lease basis.
• Exemption from electricity duty for a period of ten (10) years.
• Incentives, as applicable, as per the prevailing industrial promotional policies of the GoAP, subject to provision in a separate budget by the Energy Department for the same.
• Preference for off-take of power, PE connectivity and energy banking facility for the projects developed by the manufacturers.

Links

http://nredcap.in/SolarEnergy.aspx

References

http://nredcap.in/PDFs/Pages/AP_Solar_Power_Policy_2018.pdf