According to reports, inviting bids for setting up solar photovoltaic plants, the Andhra Pradesh Government expects the developers to set up plants within 12 months of signing up of power purchase agreements with distribution companies.
The Transmission Corporation of Andhra Pradesh Limited (AP Transco), which has been mandated by the State Government to oversee the process of selection of developers for solar power projects, has come out with detailed process including timeline for setting up about 1,000 mw capacity under the State solar policy announced in November 2012.
The last date for submission of bids is February 7, 2013. Thereafter, financial and technical bids finalised and Letter of Intent awarded to the developers.
The successful bidders will have time to sign up for power purchase agreement with Discoms within 30 days. Thereafter, they get 210 days to achieve financial closure.
After signing the PPAs, the developers will get 12 months to implement the grid connected solar projects. However, the onus of selection of land close to the substation and acquisition lies with the developers.
The developer will not be entitled to renewable energy certification option from the solar photovoltaic power plants.
Following the competitive bid process, and selection of developers, the PPA thus signed with the Discoms will be valid for 20 years.
Kicking off the process by inviting bids for solar projects, Andhra Pradesh joins select group of States which have initiated process within the State to develop solar power generation farms. Gujarat, Rajasthan and Tamil Nadu are among other States who have initiated the process.
Tamil Nadu initiated the process last year, but Gujarat and Rajasthan have made significant progress with several projects already implemented and supplying power to the grid.