Andhra Pradesh government had last year indentified a number of locations in the state including Kadiri in Ananthpur (2,200 acres) , Gurajala in Guntur District (4,575 acres) , Nennal in Adilabad district (1,008 acres) and Pulivendula and Kopparty in Kadapa district (625 acres) for solar power projects.
The state however has not announced any definitive solar policy like Gujarat or event a draft policy or a road map like Rajasthan, Tamil Nadu and Odisha.
However, the local regulator the Andhra Pradesh Electricity Regulatory Commission (APERC) has issued a tariff order for solar power projects in the state.
In what seems to be a very ambitious announcement however, a report in The Hindu says, ten companies will be investing nearly Rs.10,000 crore to produce more than 50 mega watts of solar power. With a series of solar power projects being set up in Kadiri area in the district, the ‘Solar City’ as it is called, is bracing for industrial development.
The solar power projects will be spread in 2,000 acres. Sunborne Inc, Lanco Solar, AES Solar and Titan Energy that have already signed memoranda of understanding with the State government for setting up units in Kadiri where the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has allotted 2,000 acres of land for the purpose.
Originally, the ‘Solar City’ was planed in 10,000 acres of land, but until now, only 2,000 acres has been acquired.
Other firms that are evincing interest in setting up solar plants are — I. Tagh Energy Systems, Sri Power, and Welspun, APIIC (one mega watt plant in Gooty industrial park), Amit Jai Ventures Private Limited at Kadiri, Lanco Solar Private Power Limited at Atmakaur and Amaduguru, J.R. Housing Developers at Peravali in Singanamala, Sri Sai Basava Taraka Rama Energy Private Limited, Hyderabad, at Kadiri, Surya Chakra Power Ventures Private Limited at the ‘Solar City’.
It is unclear how the report has estimated an investment of Rs.100bn for a 50MW capacity, when it is possible that atleast about 650-750MW can be installed with that kind of an investment given the costs of installations today. What is likely is that the ten companies might be setting up an intial capacity of about 50MW and a total potential that is possible in about 2000 acres is about 500MW and that could entail an investment of about Rs. 6500Cr in todays prices.