Andhra Pradesh Solar – Developers to put up a total of 350 MW

The Hindu reports that 34 bidders have accepted the Rs 6.49/kWh price offer for setting up projects under the Andhra Pradesh state solar policy. These developers will install and commission a total of 350 MW.
It may be recalled that when the Transmission Corporation of Andhra Pradesh Limited(APTRANSCO) released the tender for 1000 MW, it was well received by the bidders and oversubscribed, mainly because the tender had a sub-station wise bidding. However, after the bids were opened, the Group of Ministers decided to have a single rate for all sub-stations and set a disappointing tariff of Rs. 6.49/kWh.
Unlike the Tamil Nadu Policy, under which the tariff is similar(Rs.6.48/kWh) but has an annual tariff escalation of 5% for the first 10 years, Andhra Pradesh policy does not have the provision for escalation.
While getting developers to agree to set up 350 MW at this rate is quite commendable, Andhra Pradesh things would have turned out differently in the positive direction if it had stuck to the sub-station wise L1 and a higher tariff. Now it is upto the APTRANSCO to make sure that this 350 MW actually gets commissioned.
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