VIJAYAWADA: The Energy department has drafted the Renewable Energy Export Policy proposed to boost the renewable power plants in the State.
Officials said that the draft policy would likely to be put before the next State Cabinet meeting for approval.
According to sources, the new export policy, touted to be the first-of-its-kind, is aimed at creating a conducive environment to investors who want to set up renewable energy generation units in Andhra Pradesh.
The policy broadly has three major aspects, a top-ranking official told TNIE. “Firstly, it provides a chance for the existing firms with whom we have a power purchase agreement (PPA) to go out (export) on an open access mode, given the interstate transmission system (ISTS) waiver.
"Second aspect would be to exporting renewable power by setting up hybrid (two or more renewable sources) plants. Finally, setting up of new units only for exporting purpose like in Rajasthan,” the official explained.
For the record, Rajasthan has a policy through which an investor could set up a wind or a solar or other renewable energy plant and export it entirely to other States.
Even though the State, during the past five years, went all out for the establishment of green energy plants, the power generated in the State has not been exported.
“Unlike in Rajasthan, our State has made agreements for purchase of all the wind and solar power generated here. So, let alone exporting what is generated here, we are burdened because of buying such green power at higher prices,” another official explained.
Andhra Pradesh has 7,600.35 megawatt (MW) of cumulative capacity of renewable energy plants commissioned as of February 29, 2020. While wind energy capacity is 4,079.37 MW, solar energy accounts for 3,520.99 MW of the total capacity.
The officials expect that the new renewable export policy will boost the green power investments in the State.
It may be recalled that the State government’s move to renegotiate/review solar and wind PPAs met with severe backlash not just from within India but across the globe. Investors were spooked and even complained to the Union government, which has advised the YS Jagan Mohan Reddy government to drop its plans of reviewing legally bound pacts.
The State officials now hope that the new policy would also clear the apprehensions among investors.
“There is a lot of potential for renewable investments in AP. We expect that the new policy will boost investments in the State. In fact, some of our partners with whom we have renewable PPAs already approached us to explore the options for exporting power,” the top-ranking official explained.
Sources said that the existing firms have sought certain exemptions to explore exportable power. “Ensuring that minimum or no financial loss to our Discoms, if we dole out exemptions, is our priority. We are examining the proposals and will take a decision on them shortly,” the official noted.
Big boost to clean energy
The new export policy is aimed at creating a conducive environment to investors who want to set up renewable energy generation units in AP
Major aspects
It provides a chance for existing firms with whom the State has a PPA, to go out (export) on an open access mode, given the interstate transmission system (ISTS) waiver
Exporting renewable power by setting up hybrid (two or more renewable sources) plants
Setting up of new units only for exporting purpose like in Rajasthan
7,600.35 MW AP’s cumulative capacity of renewable energy as of Feb 29, 2020
4,079.37 MW Wind energy capacity
3,520.99 MW Solar energy capacity