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Andhra Pradesh Govt clarifies on solar policy

According to reports, the Andhra Pradesh government on Monday issued an amendment to the solar policy it brought out on September 27. The amendment clarifies that the solar project developers will be eligible for ‘renewable energy certificates’ “subject to applicable CERC/APERC guidelines”.

The developers may choose between availing themselves of “eligible incentives” under the AP solar policy or “only the incentives permissible under the CERC/APERC guidelines.”

The ‘amendment’ brought in effectively cautions solar power producers that they might get market tradable RECs only if the guidelines of the Central Electricity Regulatory Commission and the Andhra Pradesh Electricity Regulatory Commission permit. By doing so, it address a lacuna in the policy.

The AP policy essentially sought to encourage solar projects in the state by offering them exemptions from a number of charges such as wheeling and banking, cross-subsidy and electricity duty. These exemptions of course applied only to power sold within the state.

One comment

  1. Be it NVVNL PPA, REC mechanism, the policy shall be uniform and we must make government to attach an appendix that under the existing policies, what is payable, what taxes and duties payable under what clause, applicability etc in a very clear tabular form so that Consultants or MNRE, state regulatory authorities need not use their descretion. This kind of authenticated paper applicable to each state with financial numbers with illustrative cases under PPA and REC must be clearly up loaded on CERC web site to highlight the state benefits and central benefits, capital subusidies etc.. this is not a rocket science, simply allow the investors to go to such state and apply under these conditions and they can base the income based on these numbers and lenders will also be clear about such clarity to ensure the bankability…. i think the policy making by each state and center has become a joke…. one nation with uniform tariff structure, but, the incentives can be different in each state to honour the federal structure or state specific investment attraction without violating the country policy norms too… access benefits or losses must also be highlighted in tariff structure in an excel sheet with return on investment as per each state policy and it shall be the governing document valid for such tariff period. Thus payments will be uniform and policy will be clear….any new sense in change of policy or terminology, if it affects these numbers or taxes etc will be easily understood, thus, one can check unsustainable tariff or expenses to be paid to government etc thus lenders can easily understand the risks to fund such agencies who prepare false project report on false technology too… thus we can avoid people spoiling the industry….and its niche edge….

    Please do not expect too much of money from the government exchequer, otherwise country’s economic independence will be in jeopardy like in Spain, Greece etc for solar, instead let us share all the numbers, only, the interested investor make a long term investment for the real cause of business….

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