1 / 32

Solar Energy Policy in Andhra Pradesh (AP)

Solar Energy Policy in Andhra Pradesh (AP). M. Thimma Reddy People’s Monitoring Group on Electricity Regulation Jaipur – 29/11/2013. Statutory and Policy Provisions. The Electricity Act, 2003 National Electricity Policy, 2005 National Tariff Policy, 2006 Integrated Energy Planning, 2006

oya
Download Presentation

Solar Energy Policy in Andhra Pradesh (AP)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Solar Energy Policy in Andhra Pradesh (AP) M. Thimma Reddy People’s Monitoring Group on Electricity Regulation Jaipur – 29/11/2013

  2. Statutory and Policy Provisions • The Electricity Act, 2003 • National Electricity Policy, 2005 • National Tariff Policy, 2006 • Integrated Energy Planning, 2006 • National Action Plan on Climate Change, 2008

  3. Jawaharlal Nehru National Solar Mission • Launched in November 2009 • To establish India as a global leader in solar energy • To focus on setting up an enabling environment for solar technology penetration in the country both at a centralized and decentralized levels. • To create an enabling policy framework for deployment of 20,000 MW solar power by 2022

  4. Jawaharlal Nehru National Solar Mission Road Map

  5. Jawaharlal Nehru National Solar Mission • Key driver – Renewable Power Purchase Obligation (RPPO) with a solar specific component • RPPO may start with 0.25% in phase I and go up to 3% in 2022, complimented with solar specific Renewable Energy Certificate (REC) • Bundle solar power with unallocated power from central generating stations • NTPC Vidyut Vyapara Nigam (NVVN) to be the nodal agency • Soft refinance facility through IREDA with budgetary support

  6. APERC - Solar RPPO • O.P. No. 10 of 2010 dated 6th July, 2010 • A quantum of 0.25% out of 5% quantum of RPPO shall be purchased as Solar RPPO • Power is to be sourced from bundled power from NVVN, and Roof Top and other Small Solar Power Plants • Tariff for power from bundled power as per CERC regulated price, and from Roof Top Solar plants @ Rs. 5.50 per kWh with escalation factor of 3% per annum, applicable for 25 years

  7. APERC - Renewable Energy Certificate • Regulation 1 of 2012 dated: 21st March, 2012 • Compliance of RPPO by purchase of Renewable Energy or Renewable Energy Certificates • 0.25% Solar RPPO • Solar REC • Pooled cost of Rs.2. • Default: Deposit in to separate fund amounts decided by the Commission which will be used for purchase of solar REC from Power Exchange • Penalty as decided by the Commission

  8. AP Policy Objectives • To promote solar power generation • To attract investment in solar power plants • To promote investments in manufacturing facilities • To promote off-grid solar applications • To contribute to overall economic development by provision of electrical energy for various needs • To encourage decentralized, distributed generation system to reduce T&D losses

  9. Phase 1 – Captive use • G.O. Ms. No. 39 Dated 26-09-2012 • G.O. Ms. No. 44 Dated 16-11-2012

  10. Phase 1 – Captive use • Captive use or sale of power • REC mechanism • Open access • Banking

  11. Phase 1 – Captive use • Applicable to plants commissioned by June 2014 & will be in force for seven years • No wheeling and transmission charges • Cross subsidy surcharge not applicable • Electricity duty exemption • VAT Refund • Refund of stamp duty and registration charges

  12. Phase 1 – Captive use • Land is the responsibility of the developer • NREDCAP is the Nodal Agency • Project monitoring by “High Level Committee” • High Level Committee to issue clarifications • The Policy is applicable up to 2017 • Policy to be reviewed after two years

  13. Phase 1 – Captive use • G.O. Ms. No. 44 Dated 16-11-2012 • Developers to decide on utilizing incentives • Inter-State Open Access clearance will be granted within 15 days of application

  14. Phase 2 - Bidding • G.O. Ms. No. 46 – Energy (RES) Department, Date:27-11-2012 • Procure 1000 MW of Solar PV through bidding • APTRANSCO is the nodal agency • Solar Plants to connect to nearby electricity sub-stations • List of sub-stations was released • Plants to be set up within 12 months of signing PPA • PPA valid for20 years

  15. Phase 3 - Rooftop • G.O. Ms. No.22 Energy (RES) Department, Dated 25-03-2013 • Rooftop Solar • Net metering • Surplus power will be fed in to the grid • Subsidy: 30% by the central government and 20% by the state government • Sale to the grid at pooled cost (Rs. 3.00 to Rs. 3.50 per unit) • Monthly billing

  16. Neglect of solar water heaters • Simple technology • Helps to address morning peak • If 2,50,000 households install solar water heaters 270 MW can be saved • 5.23 lakh households consume more than 300 units per month • 13.6 lakh households consume more than 200 units per month • Solar water heater usage – • India: 3.53 million square meters collection capacity • China: 125 million square meters collection capacity

  17. Progress – Phase 1 • Interest shown to set up 2,500 MW • Applications received to set up 750 MW • Capacity reported to be ready 300 MW • Capacity connected to the grid 0 MW • Want of clarity on policy issues and clearances

  18. Progress – Phase 2 • 184 bidders filed 331 bids with aggregate capacity of 1,780 MW • No clarity on how to select successful bidders • Delay at arriving at benchmark price • Price quoted in the range of Rs. 6.49 to Rs. 15.40 per unit. • The Ministers Committee chose Rs. 6.49 per unit as the price • Bidders were given one month time to accept the price • Later, even those who did not participate in the bidding were allowed if they accept the price • 35 bidders came forward to set up plants with a capacity of 418 MW

  19. Status of Solar Energy in AP

  20. Procurement of Solar Power in AP

  21. Issues in AP Policy • Lack of comprehensive, integrated approach • Lack of clarity

  22. Issues in AP Policy • Lack of Political and Administrative leadership • Present power crisis might have forced the decision on the policy • Lack of relation between objectives and proposed action

  23. Role & Responsibility/Institutional capacity • Energy Department • New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) • Electricity Distribution Companies (DISCOMs) • Andhra Pradesh Electricity Regulatory Commission (APERC)

  24. Coordination • Policy formulation – • Time taken in coming out with the policy • Amendment • CM’s announcement of bidding for 1000 MW solar plants • Implementation – Nodal agency and Utilities

  25. Stakeholder engagement • Group of Ministers on Renewable Energy • Involvement of Developers • Lack of consumer or Civil Society Organisations’ involvement

  26. Transparency • Lack of awareness • Doubts or concerns on the policy

  27. Finance for implementation • Under funded nodal agency - NREDCAP • Need capacity building of NREDCAP and DISCOMs

  28. Finance for investment • Policy has implications • REC vs PPAs through bidding • Facilitation/Providing comfort particularly for small investors • Initiatives to tap resources including external/multilateral sources

  29. Compliance & Enforcement • APERC’s responsibility • APERC’s institutional capacity • Proactive steps

  30. Monitoring, reporting and revision • Provision for High Level Committee • Amendment to GO within two months

  31. Conclusion • Leadership • Coordination • Transparency

  32. Thank you

More Related