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Andhra Pradesh Wind-Solar Hybrid Power Policy - 2018

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Nodal Agency

The New and Renewable Energy Development Corporation of Andhra Pradesh.

Applicable Technologies

Wind-solar hybrid.


Eligibility Conditions

  • Any solar or wind power plant commissioned during the operative period.
  • The rated power capacity of one resource should be at least 25% of the rated power capacity of the other resource.


Policy Period

5 years from DOI or until policy is withdrawn or modified by the government or superseded by another policy.


Policy Goals

  • To procure capacity of 5,000 MW under desired CUF for next 5 years or until the next policy is issued.
  • Optimal utilization of transmission infrastructure for evacuating RE.



  • All fiscal and financial incentives available to wind and solar power projects may be available to hybrid projects.
  • Exemption of T&D charges of up to 50% of wheeling power charges for PP [A1] within the state.
  • No transmission charges for connectivity to the nearest CTU via STU network for inter-state, with wheeling of power subject to the consent of APERC.
  • Plants enjoying existing incentives from previous policies (Andhra Pradesh Solar Power Policy or from Andhra Pradesh Wind Power Policy 2015) will continue to enjoy the incentives until the operative period of those policies ceases.
  • Exemption of 50% electricity duty for captive consumption or sale to DISCOMs and third party sale provided the source of power is from wind-solar hybrid power projects set up within the state.
  • Exemption of 50% cross-subsidy surcharge shall be given to third party sale provided the source of power is from wind-solar hybrid power projects set up within the state.
  • Exemption from payment of supervision charges in case of transmission of power from STU to CTU.
  • Deemed industry status and applicable incentives under such status.
  • Status of Deemed Public Private Partnership (PPP).
  • Non-agricultural status.
  • Exempted from obtaining any NOC/consent related to pollution clearance.
  • MUST-RUN status and will not be subject to MOD (Merit Order Despatch) principles.


Implementing and Monitoring Agencies

Not mentioned.

Evacuation Arrangement

Not mentioned.

Provision for Policy Review

Not mentioned.



Hybridization of Existing Plants

  • No additional charges will be levied by the concerned transmission company for connecting the hybrid system to the grid.
  • Charges may be levied if additional transmission capacity/access is granted.
  • Any transmission augmentation required, up to the receiving transmission sub-station, will be the responsibility of the project developer.
  • Additional solar-wind power generated from the hybrid system may be used for captive purposes or sold to third party through open access, or sold to the concerned distribution company at state FiT or lowest bid price discovered by any government agency, whichever is lower, or sold to the distribution companies at APPC under REC mechanism.
  • Additional wind-solar power procured from the hybrid project can be used for sale or fulfillment of solar/non-solar RPO, as the case may be.


New Hybrid Plants

  • Hybrid power generated may be used for captive purposes or sold to the third party through open access, or sold to the concerned distribution company at state FiT or lowest bid price discovered by any government agency, whichever is lower, or sold to distribution companies at APPC under REC mechanism.
  • Price of power sold to the distribution company may be determined through a transparent bidding process.
  • The distribution company may use the quantum of purchase of hybrid power to offset its RPO.


Energy Banking & Drawal

  • 100% banking permitted during all 12 months of the year with approval from the respective utility.
  • Banking charge of 5% of energy delivered at drawal point during the banking year from March to April with energy settlements on a monthly basis.
  • Unutilized energy will be considered as a deemed purchase by DISCOMs at 75% of APPC as per the order of APERC and payment of such purchase is capped at 10% of total banked energy in the applicable year.


Metering Arrangement

  • For AC injection: AC main metering as per norms. For DC injection: DC main metering is worked[A2] . Until DC meter standards and regulations are framed, only AC injection is allowed.


Round-the-Clock Power

  • Round-the-clock (RTC) power will be made available by adopting wind-solar hybrid projects with an energy storage system, or bundling with clean resources like gas, or flexibility by balancing with power will be given priority for off taking of power by APDISCOMs or APGENCO.
  • For round-the-clock (RTC) power by wind-solar hybrid projects, at least 51% of the energy requirement should be from Renewable Energy projects (solar/wind).


Regulatory Interventions

  • APERC, Central Electricity Authority and CERC shall prepare the necessary standards and regulations for hybrid systems.


Standards and Quality

  • The technical guidelines issued by the Ministry of New and Renewable Energy (MNRE), from time to time, for grid-connected systems shall be followed.


Research and Development

  • Support for technology development.
  • Support for the development of standards.



  • Non-refundable processing fee of Rs.25,000/- per MW by NREDCAP.
  • Allotment fee of Rs.1,50,000/- per MW shall be paid at the time of entering into the agreement.
  • The project shall be completed within 24 months from the date of allotment.
  • The developer must furnish a performance bank guarantee of Rs.2 Lakh per MW in favour of NREDCAP.
  • Prior approval from APERC and GoAP for off-take of power from wind-solar hybrid projects is a must.



The Government of Andhra Pradesh has set a target of achieving 18,000 MW renewable energy capacity by the year 2021-22.

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