Andhra Pradesh plans 9,000 MW of wind energy and solar power

The government of Andhra Pradesh has drawn up an action plan for making the state a renewable energy hub in four years.

As part of the plan, it has set a target of achieving 5,000 MW solar energy and 4,000 MW wind power capacities in four years.


The state government plans to add 800 MW during 2015-16, 1,200 MW during 2016-17 and 1,500 MW each in 2017-18 and 2018-19.

Ajay Jain, energy secretary, said a green energy corridor at an estimated cost of Rs 1,289 crore will be set up with support of the central government and international financial institutions.

The central government has sanctioned a grant of Rs 515 crore for development of wind power and green energy corridor. German bank KFW has agreed to sanction Rs 515 crore at concessional rate of interest, he said.

The transmission and distribution companies would soon initiate steps to mobilise the balance investments from Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), Jain added.

The state government will also set up a taskforce for expediting the renewable energy projects.

The discoms will procure around 2,000 MW solar power in phases in the next 4 years through long-term power purchase agreements with developers, selected on the basis of a competitive procurement process.

Jain said the solar and wind policy of Andhra Pradesh would be among the best to attract entrepreneurs for investments. The state has initiated steps to develop the biggest solar park with a capacity of around 2,500 mw with support from the central government, NTPC and MNRE. The state also plans to develop 1,000 MW more solar power parks in Anantapur, Kadapa and Kurnool districts.

The solar park will comprise zones for solar power projects, manufacturing zones, R&D and training centres. The state will extend all facilities and incentives to manufacturers. Special purpose vehicle(s) will be established for development of infrastructure and management of solar park. The SPV will formulate policy and rules in respect of land allotment, sharing of development cost by the solar power producers and manufacturers.