Andhra Pradesh Solar – Open Offer Issued

APTRANSCO has issued an open offer from prospective project developers for development of solar projects in the state. It maybe recalled that Andhra Pradesh announced a solar capacity allocation of 1000 MW, but due to a relatively low tariff of Rs. 6.49/kWh announced by APTRANSCO, many of the developers lost interest in the state policy and only a few developers agreed to the tariff. It is in this context that APTRANSCO has come up with the open offer to achieve its target of 1000 MW.
Any developer willing to execute a Power Purchase Agreement(PPA) for a period of 20 years at the rate of Rs.6.49/kWh can submit their applications by 30 September. According to Hyderabad based Efficient Carbon,
“While there is no bidding process involved, locations which get applications in excess of the capacity of that location will be awarded at pro-rata basis. APTRANSCO has issued a list of locations which are available to interested developers. The initial list of 161 locations in the bidding process is reduced to 109 locations for the Open Offer owing to fill up of certain locations. Locations such as Suryapet, Ramannapet, Kanigiri and Sadasivpet have a reduced capacity due to partial fill-up by bidders.”
More details and the official documents can be downloaded at the Efficient Carbon website here.
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2 thoughts on “Andhra Pradesh Solar – Open Offer Issued”

  1. Not sure 6.49/kwh has any semblance of a favourable investor friendly return -not to mention the high prospect of payment delays &/or failures from AP discom/govt. In comparison investing in 10year GOI bonds or AAA Treausry guarantees abt 8.5% tax free and immediate liquidity.

  2. In current economic scenario:-
    1- INR v/s. USD is approx. 66 Rs., cost of solar project has gone up
    2- Lower generation per MW in AP, in comparison to deserts of Rajasthan
    3- No payment security mechanism even @ Rs. 6.49 tariff
    4- very very lower ROI / IRR for Solar Project
    This was the reason 1000mw was not fully bidded by solar project developers and now AP govt. has to open it for all investors.

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