Thursday, 25 April 2013

Andhra Pradesh proposes tariff of 6.49 INR/KWh


Andhra Pradesh government on Tuesday fixed the benchmark price for purchase of solar power at Rs 6.49 per unit. The Cabinet Sub-Committee on Power fixed the benchmark price at its meeting on Tuesday. The State through AP Transco as the nodal agency had invited bids from private developers to set up solar PV units aiming to develop about 1000 MW in view of the unprecedented electricity crisis.


In the process, about 331 bids for development of 1,780 MW were received.
Developers will be given 30 days to respond to the proposal. 

The tariff offered by Andhra Pradesh is lower than what developers will eventually get in Tamil Nadu

So it is to be seen how developers will take to such a tariff offer in Andhra Pradesh. 

If one were to compare the rates offered by Andhra Pradesh and Tamil Nadu, the Scenario completely changes. 

Tamil Nadu had offered Rs 6.48 a unit with escalation facility of 5 per cent over 10 years. This leads to a levelised tariff of Rs 7.75 a unit.


As per the new solar power policy announced by the state government, net metering facility will be implemented for consumers who set up solar PV plants on roof-tops, waste lands, industries, offices, institutions and residential complexes. Subsidy will be provided by the Union Government up to 30 per cent of the panel cost up to a capacity of 500 KW without battery support

So now we have to wait and see how the developers respond to this...

please let know your suggeestions and feedback 

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