Andhra Pradesh finalises tenders for 6,400mw solar power plants across 10 parks

On Thursday, Andhra Presh government has finalised tender for development of 6,400 MW mega solar power plant across 10 parks. aim of government is to reduce subsidy burden resulting from supply of uninterrupted free power to farmers. four parks are coming up in Kapah district, three in Anantapur, two in Prakasam and one in Kurol.

This process resulted government in securing close to 14,000 million units of power per annum at a tariff of 2.48 per kWh, which is lower than tariff at which AP Distribution Utilities are procuring power. However, this involves a huge subsidy burden on state government, but supply of free power to farmers is of paramount importance. To meet revenue gap of distribution utilities, state has to incur close to Rs. 10,000 crores.

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concern is burden of PPAs executed by previous TDP government at exorbitant tariffs. aver power procurement cost of state as of w is close to Rs. 5.2 per kWh. refore, YSRC government has formulated an approach to procure power from proposed solar projects. By making functioning of sector sustainable, this would ensure reliable daytime power to farmers and also reduce subsidy burden on government 

low tariff of Rs. 2.48 would result in a savings of nearly Rs. 3,800 crores in very first year and this savings is likely to increase over years. present tariff of 2.48 for energy from 6,400 MW solar power project would remain constant over next 30 years. 

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State's Exchequer a Whopping 50,000 crore

present benefit accruing to AP government exchequer over life of this project can be estimated at Rs 50,000 crore. Big players such as NTPC ani group and Torrent power placing has filed tender and bids to develop project. first stretches over 10 different locations have attracted a total of 24 bids in all. 

10 Solar power parks with tariffs

authorities have hered to all guidelines prescribed by Ministry of New and Renewable energy in an attempt to make process as transparent and objective as possible, unlike never before. transparent manner of processing bids along with reverse tendering mechanism has ensured discovery of low tariff. tariffs discovered of 10 Solar parks are as follows:

1. Chakrayapet Ultra Mega Solar Park, Chakrayapet Mandal, YSR Kapa District
L1 Bidder(s)- NTPC Limited
Bid Capacity (MW)- 600
Capacity Won (MW)- 600
Final Tariff (INR/kWh)- 2.48

2. Thondur Ultra Mega Solar Park, Thondur Mandal, YSR Kapa District
L1 Bidder(s)- Shirdi Sai Electricals Limited
Bid Capacity (MW)- 400
Capacity Won (MW)- 400
Final Tariff (INR/kWh)- 2.49

3. M.Kambalinne Ultra Mega Solar Park, Mylavaram Mandal, YSR Kapa District
L1 Bidder(s)- ani Renewable Energy Holding Twelve Limited
Bid Capacity (MW)- 600
Capacity Won (MW)- 600
Final Tariff (INR/kWh)- 2.49

4. Pendlimarri Ultra Mega Solar Park, Pendlimarri Mandal, YSR Kapa District,
L1 Bidder(s)-  ani Renewable Energy Holding Twelve Limited
Bid Capacity (MW)- 600
Capacity Won (MW)- 600
Final Tariff (INR/kWh)- 2.49

5. Rudrasamudram Ultra Mega Solar Park, Donakonda Mandal, Prakasam District
L1 Bidder(s)- ani Renewable Energy Holding Twelve Limited
Bid Capacity (MW)- 600
Capacity Won (MW)- 600
Final Tariff (INR/kWh)- 2.49

5. CS Puram Ultra Mega Solar Park, CS Puram Mandal, Prakasam District
L1 Bidder(s)- ani Renewable Energy Holding Twelve Limited
Bid Capacity (MW)- 600
Capacity Won (MW)- 600
Final Tariff (INR/kWh)- 2.58

6. Uruchintala Ultra Mega Solar Park, Tipatri Mandal, Anantapuram District
L1 Bidder(s)- Torrent Power Limited
Bid Capacity (MW)- 600
Capacity Won (MW)- 600
Final Tariff (INR/kWh)- 2.47

7. L1 Bidder(s)- Shirdi Sai Electricals Limited
Bid Capacity (MW)- 300
Capacity Won (MW)- 300
Final Tariff (INR/kWh)- 2.48

8. L1 Bidder(s)- HES Infra Private Limited
Bid Capacity (MW)- 600
Capacity Won (MW)- 300
Final Tariff (INR/kWh)- 2.49

9. Mudigubba Ultra Mega Solar Park, Mudigubba Mandal, Anantapuram District
L1 Bidder(s)- ani Renewable Energy Holding Twelve Limited
Bid Capacity (MW)- 600
Capacity Won (MW)- 600
Final Tariff (INR/kWh)- 2.49

10. Kolimigundla Ultra Mega Solar Park, Kolimigundla Mandal, Kurol District
L1 Bidder(s)- Shirdi Sai Electricals Limited
Bid Capacity (MW)- 600
Capacity Won (MW)- 600
Final Tariff (INR/kWh)- 2.48

During period 2014-19, debt in sector has risen from Rs. 33,500 crores to Rs. 70,250 crores, total payables of sector have risen from Rs. 2,893 crores to Rs. 21,500 crores during five year period. negative net worth of both distribution utilities was to tune of Rs. 19,920 crores on March 31,2019.

Previously, TDP Government executed contracts with companies, to procure power at tariffs going way beyond Rs. 5 per kWh, when prevailing cost of rmal power was around Rs. 4 per kWh. refore, distribution utilities were forced to replace low-cost power with high-cost power. Unlike previous government,  present government focuses on safeguarding state resources in process. Also committed to execute agreements for procuring power at tariffs significantly lower than current prevailing rmal cost of around Rs. 5 per kWh.

proposed solar power plants will strengn rural ecomy and improve living standards of farmers by providing energy to agricultural sector which consumes up to 30 per cent of total power consumption. 

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