ANDHRA PRADESH SOLAR POLICY &

DISCOM PERSPECTIVE IN COMPLIANCE OF

SOLAR POLICY
23
rd
May 2013, Hyderabad
Central Power Distribution Company of Andhra Pradesh Limited
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STRUCTURE OF PRESENTATION
Central Power Distribution Company of Andhra Pradesh Limited
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1. Energy Scenario
2. A.P-Renewable Energy Potential
3. DISCOMS-RPPO
4. Solar policy of the State
5. Discom Perspective

ENERGY SCENARIO
Central Power Distribution Company of Andhra Pradesh Limited
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Parameter Country AP
Installed Capacity 2,23,000 MW 15,791
Thermal 1,30,000 MW 8,142
Hydel 39,000 MW 3,817
Oil & Gas 21,000 MW 2,638
Nuclear 5,000 MW nil
Renewable 28,000 MW 1112
RENEWABLE ENERGY SCENARIO
Central Power Distribution Company of Andhra Pradesh Limited
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Parameter Country AP
Installed Capacity 28,000 MW 1112
Wind 19,000 MW 450
Mini-Hydel 3,600 MW 104
Bagasse 2,300 MW 294
Bio-mass 1,300 MW 220
Solar 1,700 MW 44
RENEWABLE ENERGY -POTENTIAL
Central Power Distribution Company of Andhra Pradesh Limited
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Parameter Country AP
Wind 50,000 MW 6,000
Solar 5,000 Trillion units/yr 5-7 KWh/sqmt
APGENCO
Thermal; 35,958
; 40.0%
APGENCO
Hydel; 7,057 ;
7.8%
CGS - Thermal;
26,740 ; 29.7%
Gas; 4,137 ;
4.6%
Nuclear;
3,473 ; 3.9%
Renewable;
2,431 ; 2.7%
Other; 10,138 ;
11.3%
Energy Procurement (MU) - AP: FY 2013-14
Renewable sources of energy should play a major role in
reducing energy deficits in the state
Central Power Distribution Company of Andhra Pradesh Limited
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Energy Deficits AP: FY 2013-14
Unrestricted demand (MU) 106,061
Demand Met (MU) 89,934
Deficit (%) 15.2%
Andhra Pradesh has been facing
severe energy deficits and the
situation is likely to continue in the
coming years

The deficits are likely to continue due
to :
Domestic coal shortages
Drastic drop in domestic gas
availability from KG D6

DISCOMs plan to tap the Renewable
potential in the state in coming years

APERC Tariff order FY 2013-14
APERC-REGULATION ON RPPO
Central Power Distribution Company of Andhra Pradesh Limited
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APERC issued regulation 1/2012

Regulation makes it mandatory for every distribution licensee to purchase a
quantum of not less than 5% of total consumption from Renewable energy
sources during each years from 2012-13 to 2016-17
A minimum of 0.25% out of the total 5% Renewable power purchase
obligation from Generation based on Solar energy
Entity can also fulfill the RPOO by purchase of certificates


APERC Tariff order FY 2013-14
Renewable power procurement : Andhra Pradesh
Central Power Distribution Company of Andhra Pradesh Limited
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No. of solar power
projects in Andhra Pradesh
is low which can be
increased in future as AP
provides huge scope for
setting up solar power
projects in the state.

Currently, NTPC Vidyut
Vyapar Nigam (NVVN) is
supplying 30 MW capacity
solar power to Andhra
Pradesh out of 65 MW
capacity allotted.

Andhra Pradesh Installed capacity (MW)
Parameter Solar Non Solar
No of Projects 15 204
Installed capacity
in MW
44 1,068
APDISCOMS status of Renewable Obligations
Central Power Distribution Company of Andhra Pradesh Limited
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Status of RPPO in APDISCOMS (Consolidated)
FY 2012-13
Parameter
Total
Procurement
(MU)
APERC
RPPO
Target
(%)
RPPO met
(%)
DISCOM
Procurement
82,117 -NA- -NA-
Non Solar RE
Procurement
2,459 4.75% 2.99%
Solar Power
Procurement
103 0.25% 0.13%

DISCOMs were not able to
meet the RPPO targets

Financial implication for
purchase of REC is around
Rs 105 Crs
No budgetary provision
during 2012-13


Renewable power procurement : APCPDCL
Central Power Distribution Company of Andhra Pradesh Limited
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Under Phase I of
Jawaharlal Nehru National
Solar Mission, NVVN 65
MW Solar power was
allocated to AP under
Bundled Scheme (35 MW
allocated to APCPDCL)

Currently, NVVN is
supplying 30 MW capacity
solar power to Andhra
Pradesh out of 65 MW
capacity allotted.
APCPDCL Installed capacity (MW)
Parameter Solar Non Solar
No of Projects 12 76
Installed capacity
in MW
24.89 300.23
APCPDCL Status on Renewable Power purchase obligation
Central Power Distribution Company of Andhra Pradesh Limited
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Status of RPPO in CPDCL
FY 2012-13
Parameter
Total
Procureme
nt (MU)
APERC
RPPO
Target
(%)
RPPO met
(%)
DISCOM
Procurement
35,077 - NA - - NA -
Non Solar
RE
Procurement
524 4.75% 1.50%
Solar Power
Procurement
22 0.25% 0.06%

DISCOMs were not able to
meet the RPPO targets

RENEWABLE POWER PURCHASE OBLIGATION
FOR 2013-14
Central Power Distribution Company of Andhra Pradesh Limited
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APERC Tariff order FY 2013-14
Parameter STATE CPDCL
Energy Requirement MU 89,934 40498
Renewable Power purchase
obligation MU
4496 2024
Solar power purchase
obligation MU
224 101
The Andhra Pradesh government is undertaking several
steps to encourage renewable power
Central Power Distribution Company of Andhra Pradesh Limited
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Solar Power Policy
Tariff Increase
To encourage, develop and promote solar power generation in the State, the government
announced several policy incentives for solar power generation
GoAP has announced an incentive of up to Rs.1.50/kWh for FY 2013-14 over and above the
APERC tariff for biomass power producers, subject to a maximum tariff of Rs.5.50/unit
APERC has increased the tariff applicable for wind energy generators to Rs. 4.70/kWh
Net metering facility to be provided to the consumers to generate solar power for self-consumption
and feeding excess power into the grid
Roof top solar and Net metering
The government has called a tender for procurement of 1,000 MW of solar power
1,000 MW Solar power tender
AP Solar Power Policy (1/2)
Central Power Distribution Company of Andhra Pradesh Limited
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The Government of AP is providing the following incentives to the
solar power generators in the state for encouraging solar power
generation:
100% banking facility
No wheeling & transmission charges
No cross subsidy surcharge
Electricity Duty exemption
VAT refund for all the inputs required
Refund of Stamp Duty & Registration charges
REC eligibility
AP Solar Power Policy (2/2)
Central Power Distribution Company of Andhra Pradesh Limited
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Status of Projects under this policy
Sl. No Description
No of
applications
received
Capacity in
MW
Technical feasibility
reports received No of plants
synchronized
No of Plants
Capacity in
MW
1
Sale to
DISCOM at
Pooled cost
12 59 9 46 --
2
Third Party/
Captive use
74 357.65 61 288.9 3 (19 MW)
AP is planning to 1,000 MW of solar power through a
competitive bidding process (1/2)
Central Power Distribution Company of Andhra Pradesh Limited
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1. Government of AP formulated a solar policy in which it directed
the DICCOMs to procure 1,000 MW of solar power through a
competitive bidding process

2. Accordingly, APTRANSCO initiated the tender process in January
2013
3. Financial bids of qualified bidders were evaluated & the lowest bid
was Rs. 6.49/kWh
4. This rate was offered to all bidders

Encouraging solar roof top and net metering
Central Power Distribution Company of Andhra Pradesh Limited
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1. Net Metering facility to be implemented to encourage consumers
to set up solar PV plants at unutilized places on rooftops, waste
lands, industries,offices, institutions, etc,

2. Under this facility, consumer will generate solar power for self
consumption and feed excess power into the grid

3. The consumer would be paid a certain tariff for the energy injected
into the grid

4. Net metering facility shall be allowed only for 3 Phase service
consumers. Single phase consumers are not eligible for net
metering to avoid imbalance in the phases




ROAD AHEAD
Central Power Distribution Company of Andhra Pradesh Limited
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1. It is expected that State policy on solar power shall give a big
fillip to solar power generation and DISCOM s shall fulfill its
obligation
2. In case of any shorfall, the DISCOMs can fulfil its obligation by
purchasing RECs as APERC has made a budgetary provision of
Rs 122 crs for all discoms and for CPDCL Rs 93 crs






Thank You

Central Power Distribution Company of Andhra Pradesh Limited
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