solar energy policy in andhra pradesh (ap) m. thimma reddy people’s monitoring group on...
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Solar Energy Policy in Andhra Pradesh (AP)
M. Thimma ReddyPeople’s Monitoring Group on Electricity Regulation
Jaipur – 29/11/2013
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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
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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
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Jawaharlal Nehru National Solar Mission
Segment Target Phase I (2010-2013)
Target Phase II(2013-2017)
Target Phase III(2017-2022)
Solar Collectors 7 million sq meters 15 million sq meters
20 million sq meters
Off grid solar applications
200 MW 1000 MW 2000 MW
Utility grid power including roof top
1,000 – 2,000 MW 4,000 – 10,000 MW
20,000 MW
Road Map
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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
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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
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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
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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
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Phase 1 – Captive use
• G.O. Ms. No. 39 Dated 26-09-2012
• G.O. Ms. No. 44 Dated 16-11-2012
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Phase 1 – Captive use
• Captive use or sale of power
• REC mechanism
• Open access
• Banking
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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
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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
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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
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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
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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
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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
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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
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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
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Status of Solar Energy in AP
Scheme Sanctioned (MW) Executed (MW)RTSS 10.5 9.5
Batch I - PV 15.0 12.0
Solar Thermal 50.0 Under Execution
Batch II 20.0 Under Execution
Total 95.5 21.5
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Procurement of Solar Power in AP
Particulars 2011-12 2012-13 2013-14
Solar (MU) 2.43 4.10 569.33
Solar (Rs/U) 5.43 5.43 5.50
Total NCE (MU) 1598.63 1575.00 3473.24
Total NCE (Rs/U)
3.22 3.24 4.44
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Issues in AP Policy
• Lack of comprehensive, integrated approach
• Lack of clarity
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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
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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)
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Coordination
• Policy formulation – Time taken in coming out with the policy AmendmentCM’s announcement of bidding for 1000 MW
solar plants
• Implementation – Nodal agency and Utilities
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Stakeholder engagement
• Group of Ministers on Renewable Energy
• Involvement of Developers
• Lack of consumer or Civil Society Organisations’ involvement
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Transparency
• Lack of awareness
• Doubts or concerns on the policy
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Finance for implementation
• Under funded nodal agency - NREDCAP
• Need capacity building of NREDCAP and DISCOMs
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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
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Compliance & Enforcement
• APERC’s responsibility
• APERC’s institutional capacity
• Proactive steps
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Monitoring, reporting and revision
• Provision for High Level Committee
• Amendment to GO within two months
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Conclusion
• Leadership
• Coordination
• Transparency
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Thank you