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Web Exclusive | June 2013

AP's 1,000 mw solar project attracts few takers

The Andhra Pradesh government's ambitious solar power project, which aims to generate 1,000 mw, received a major setback with the majority of private generators rejecting the price fixed by the government.

The group of ministers after a series of meetings had decided at Rs 6.49 per unit as the purchase price for solar power from private generators. While 184 bidders were technically qualified to set up solar power plants, only seven bidders agreed to set up plants with a meager capacity of 53 MW at the rate fixed by the government.

Taken aback by the lackluster response, the State government extended the time to accept the offer made by the Group of Ministers. After prolonged negotiations, another 27 bidders came forward to set up solar power plants with some conditions. The conditions include allowing changes in the plant location and capacity. Surprisingly, the State government has also agreed to increase the power purchase rate, if the same is increased at a latter date. Even after agreeing to their conditions, the total solar power capacity to be added to the state grid has not even reached the half-way mark. Total 34 bidders would set up plants to generate about 350 mw, whereas the government called bids for 1,000 mw.

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