Wednesday, August 27, 2014: Power crisis is one of the biggest troubles in India. To get over this crisis, Eastern Power Distribution Company of AP Limited (APEPDCL) has announced that they will procure solar power from a private player for 25 years. If everything goes as planned, then an additional 250 MW solar power will be procured from 2016.
As per the deal, APEPDCL will join hands with Tirupati-based SPDCL to procure 500 MW solar power per day. The project, called Grid Connected Solar Photo Voltaic Projects in Andhra Pradesh (GCSPVPAP), gives APEPDCL full authority to select their suitable solar power developer through a global tender. The private solar power developer needs to generate 500 MW power in 13 districts. This power will be equally distributed between Vizag-based APEPDCL and APSPDCL, covering five and eight districts, respectively. These two units will pay the developer a fixed price, as per the tender.
The deal-signing of the power purchase agreement (PPA) will take place on 29 October and after that the developer will be given one year time to set up the project. Power generation is expected to start from 2016. Ch Tata Rao, divisional engineer of APSPDCL, said, “We will start receiving bids for the project from September 2 to 17.” The developer will install plants at selected locations in the 13 districts. As per APEPDCL, 26 locations have been found suitable, including five each in Srikakulam and Vizianagaram districts, six in Visakhapatnam, three in East Godavari and seven in West Godavari. The solar power will be supplied directly to nearest sub-stations.
B Ramesh Prasad, chief general manager (commercial) of APEPDCL, confirmed this development, “Both APSPDCL and APEPDCL will procure power from the developer as per the terms of the power purchase agreement. We will pay the developer at the per unit price to be decided at the time of finalisation of the suitable developer through the open bid. The discoms will just purchase power from the developer at the decided per unit cost. The rest of things like installation of solar plants, manpower and all other works will have to be taken care of by the developer alone.” Presently, total 14,000 million units of power are supplied by the discom per annum among which only 0.09 per cent is solar energy.
