Judicial Committee Nods For 10K MW Solar Power Plants Tenders In AP

AMARAVATI: Andhra Pradesh State Energy Minister Balineni Srinivasa Reddy said that the Judicial Preview Committee cleared the 10,000 megawatt (MW) solar power projects, paving way for providing free power to agriculture sector for the next 30 years. The Judicial Preview Committee has cleared tenders for solar plants in 10 places with a cumulative capacity of 6,400 MW. Speaking to reporters on Sunday, the Minister said that tenders would be called for by APGENCO subsidiary-the Andhra Pradesh Green Energy Corporation Ltd (APGECL) shortly.

He said that the 10,000-megawatt solar power project was designed in line with Chief Minister YS Jagan Mohan Reddy's commitment to provide free electricity for the agriculture sector. The Energy Minister further stated that implementation of the free 9-hour power scheme would help improve agricultural productivity  and boost the rural economy.

“Agriculture consumption accounts for nearly 30 per cent of total power consumed in the State. In view of this, there is a need to provide assurance to the farming community on reliable and quality free power supply to agriculture during daytime for the next three decades. Solar energy has the potential to fulfil these objectives and the cost of production is less than the average power purchase cost of Discoms,” said Chairman and Managing Director of AP Solar Power Corporation Ltd G Sai Prasad.

Subsidies on electricity for agri purposes rose from Rs 3,156 crore in 2015-16 to Rs 8,354 crore by 2020-21, according to the Department of Energy. At present, DISCOMs pay Rs 4.68 per unit for electricity, while solar power costs between Rs 2.43 and Rs 3.02 per unit. APGECL officials estimate that setting up mega solar power projects in the state could save the state over Rs 48,800 crore over the next 30 years.