In a bid to promote effective solar production, the Andhra Pradesh Government has issued an amendment to the solar policy it had released on 27 September. The amendment clarifies that solar project developers will be eligible for ‘renewable energy certificates, subject to applicable CERC/APERC guidelines’.
The developers may choose between getting ‘eligible incentives’ under the AP solar policy or ‘only the incentives permissible under the CERC/APERC guidelines.’ This amendment cautions solar power producers, as they might get market tradable RECs only if the guidelines of the Central Electricity Regulatory Commission and the Andhra Pradesh Electricity Regulatory Commission permit.
The primary reason of the policy is to encourage solar projects in the State by offering them exemptions from wheeling and banking, cross-subsidy and electricity duty, which are applicable only to power sold within the State as of now. These exemptions have made the policy look very attractive.
While most of the people are excited by this decision, some experts believe that the policy went against the spirit of REC regime. Basically, those who produce power from renewable sources get tradeable certificates only if they do not get a preferential feed-in tariff and do not avail any other concession. But by giving them exemptions, it seemed that the policy was disputing the basic principle of the REC regime.
Going by the CERC guidelines, the solar project developers who put up projects under the policy will not get RECs, if they avail themselves of the exemptions, which can be contradicted by APERC, who may come out with its own guidelines permitting the issuance of RECs to the developers.
