1. Solar Energy Policy in Andhra Pradesh (AP) M. Thimma Reddy People’s Monitoring Group on Electricity Regulation Jaipur – 29/11/2013

2. Statutory and Policy Provisions The Electricity Act, 2003 National Electricity Policy, 2005 National Tariff Policy, 2006 Integrated Energy Planning, 2006 National Action Plan on Climate Change, 2008

3. Jawaharlal Nehru National Solar Mission Launched in November 2009 To establish India as a global leader in solar energy To focus on setting up an enabling environment for solar technology penetration in the country both at a centralized and decentralized levels. To create an enabling policy framework for deployment of 20,000 MW solar power by 2022

4. Jawaharlal Nehru National Solar Mission SegmentTarget Phase I (2010-2013) Target Phase II (2013-2017) Target Phase III (2017-2022) Solar Collectors 7 million sq meters15 million sq meters 20 million sq meters Off grid solar applications 200 MW1000 MW2000 MW Utility grid power including roof top 1,000 – 2,000 MW4,000 – 10,000 MW 20,000 MW Road Map

5. Jawaharlal Nehru National Solar Mission Key driver – Renewable Power Purchase Obligation (RPPO) with a solar specific component RPPO may start with 0.25% in phase I and go up to 3% in 2022, complimented with solar specific Renewable Energy Certificate (REC) Bundle solar power with unallocated power from central generating stations NTPC Vidyut Vyapara Nigam (NVVN) to be the nodal agency Soft refinance facility through IREDA with budgetary support

6. APERC - Solar RPPO O.P. No. 10 of 2010 dated 6 th July, 2010 A quantum of 0.25% out of 5% quantum of RPPO shall be purchased as Solar RPPO Power is to be sourced from bundled power from NVVN, and Roof Top and other Small Solar Power Plants Tariff for power from bundled power as per CERC regulated price, and from Roof Top Solar plants @ Rs. 5.50 per kWh with escalation factor of 3% per annum, applicable for 25 years

7. APERC - Renewable Energy Certificate Regulation 1 of 2012 dated: 21 st March, 2012 Compliance of RPPO by purchase of Renewable Energy or Renewable Energy Certificates 0.25% Solar RPPO Solar REC Pooled cost of Rs.2. Default: Deposit in to separate fund amounts decided by the Commission which will be used for purchase of solar REC from Power Exchange Penalty as decided by the Commission

8. AP Policy Objectives To promote solar power generation To attract investment in solar power plants To promote investments in manufacturing facilities To promote off-grid solar applications To contribute to overall economic development by provision of electrical energy for various needs To encourage decentralized, distributed generation system to reduce T&D losses

9. Phase 1 – Captive use G.O. Ms. No. 39 Dated 26-09-2012 G.O. Ms. No. 44 Dated 16-11-2012

10. Phase 1 – Captive use Captive use or sale of power REC mechanism Open access Banking

11. Phase 1 – Captive use Applicable to plants commissioned by June 2014 & will be in force for seven years No wheeling and transmission charges Cross subsidy surcharge not applicable Electricity duty exemption VAT Refund Refund of stamp duty and registration charges

12. Phase 1 – Captive use Land is the responsibility of the developer NREDCAP is the Nodal Agency Project monitoring by “High Level Committee” High Level Committee to issue clarifications The Policy is applicable up to 2017 Policy to be reviewed after two years

13. Phase 1 – Captive use G.O. Ms. No. 44 Dated 16-11-2012 Developers to decide on utilizing incentives Inter-State Open Access clearance will be granted within 15 days of application

14. Phase 2 - Bidding G.O. Ms. No. 46 – Energy (RES) Department, Date:27- 11-2012 Procure 1000 MW of Solar PV through bidding APTRANSCO is the nodal agency Solar Plants to connect to nearby electricity sub- stations List of sub-stations was released Plants to be set up within 12 months of signing PPA PPA valid for20 years

15. Phase 3 - Rooftop G.O. Ms. No.22 Energy (RES) Department, Dated 25-03-2013 Rooftop Solar Net metering Surplus power will be fed in to the grid Subsidy: 30% by the central government and 20% by the state government Sale to the grid at pooled cost (Rs. 3.00 to Rs. 3.50 per unit) Monthly billing

16. Neglect of solar water heaters Simple technology Helps to address morning peak If 2,50,000 households install solar water heaters 270 MW can be saved 5.23 lakh households consume more than 300 units per month 13.6 lakh households consume more than 200 units per month Solar water heater usage –  India: 3.53 million square meters collection capacity  China: 125 million square meters collection capacity

17. Progress – Phase 1 Interest shown to set up 2,500 MW Applications received to set up 750 MW Capacity reported to be ready 300 MW Capacity connected to the grid 0 MW Want of clarity on policy issues and clearances

18. Progress – Phase 2 184 bidders filed 331 bids with aggregate capacity of 1,780 MW No clarity on how to select successful bidders Delay at arriving at benchmark price Price quoted in the range of Rs. 6.49 to Rs. 15.40 per unit. The Ministers Committee chose Rs. 6.49 per unit as the price Bidders were given one month time to accept the price Later, even those who did not participate in the bidding were allowed if they accept the price 35 bidders came forward to set up plants with a capacity of 418 MW

19. Status of Solar Energy in AP SchemeSanctioned (MW)Executed (MW) RTSS 10.59.5 Batch I - PV 15.012.0 Solar Thermal 50.0Under Execution Batch II 20.0Under Execution Total 95.521.5

20. Procurement of Solar Power in AP Particulars 2011-122012-132013-14 Solar (MU) 2.434.10569.33 Solar (Rs/U) 5.43 5.50 Total NCE (MU) 1598.631575.003473.24 Total NCE (Rs/U) 3.223.244.44

21. Issues in AP Policy Lack of comprehensive, integrated approach Lack of clarity

22. Issues in AP Policy Lack of Political and Administrative leadership Present power crisis might have forced the decision on the policy Lack of relation between objectives and proposed action

23. Role & Responsibility/Institutional capacity Energy Department New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) Electricity Distribution Companies (DISCOMs) Andhra Pradesh Electricity Regulatory Commission (APERC)

24. Coordination Policy formulation –  Time taken in coming out with the policy  Amendment  CM’s announcement of bidding for 1000 MW solar plants Implementation – Nodal agency and Utilities

25. Stakeholder engagement Group of Ministers on Renewable Energy Involvement of Developers Lack of consumer or Civil Society Organisations’ involvement

26. Transparency Lack of awareness Doubts or concerns on the policy

27. Finance for implementation Under funded nodal agency - NREDCAP Need capacity building of NREDCAP and DISCOMs

28. Finance for investment Policy has implications REC vs PPAs through bidding Facilitation/Providing comfort particularly for small investors Initiatives to tap resources including external/multilateral sources

29. Compliance & Enforcement APERC’s responsibility APERC’s institutional capacity Proactive steps

30. Monitoring, reporting and revision Provision for High Level Committee Amendment to GO within two months

31. Conclusion Leadership Coordination Transparency

32. Thank you