Overview

General State Overview
State Andhra Pradesh
State Regulatory Commission Andhra Pradesh State Electricity Regulatory Commission
State Nodal Agency New & Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP)
Installed Capacity (MW) 126.77 MW (as on 31.3.2015) [Source: MNRE]
Potential Area Clusters (Tehsil) Ananthapur , Mahbubnagar, Kurnool
Break down of Installed Capacity (MW) JNNSM 50 (as on 31.3.2015) [Source: MNRE]
State Solar Policy 44.5 (as on 31.3.2015) [Source: MNRE]
 REC 21.75 (as on 31.3.2015) [Source: MNRE]
Rooftops 0.52 (as on 31.3.2015) [Source: MNRE]
CPSU 10 (as on 31.3.2015) [Source: MNRE]
SOLAR POLICY OVERVIEW
Title of policy Andhra Pradesh Solar Power Policy 2015 Andhra Pradesh Solar Power Policy 2015
Time span of the policy 2015-2020 or until new policy is issued Andhra Pradesh Solar Power Policy 2015
Target (MW) 5000 MW Andhra Pradesh Solar Power Policy 2015
Categories of applications covered in the solar policy Solar Power Projects (SPP) for sale to AP DISCOMS Andhra Pradesh Solar Power Policy 2015
SPP for third part sale/captive consumption Andhra Pradesh Solar Power Policy 2015
SPP in Solar Parks Andhra Pradesh Solar Power Policy 2015
Rooftop based solar projects (gross/net metering) Andhra Pradesh Solar Power Policy 2015
Solar pump sets Andhra Pradesh Solar Power Policy 2015
Single Window Clearance On payment of INR 25/kWh to NREDCAP AP State Solar Policy 2015
Provisions for Net Metering Both Net/Gross Metering shall be made available in the state and the applicable tariff for each case will be the APPC of each year as decided by APERC. APEPDCL is expected to come out with the modalities of net/gross metering which shall be followed by all DISCOMS in the state. Section 3 D of AP Solar Power Policy 2015
Provisions for Solar Parks 2500 MW of solar capacity targeted to be setup under solar parks. Solar parks will be setup by a SPV dedicated for development of the solar park and related policies and issues. Parks will be developed in clusters of 500-1000 hectares. Section 3 C of AP Solar Power Policy 2015
Land Acquisition Support Deemed Non-Agricultural status for land on payment of applicable statutory fees Section 4 l of AP Solar Power Policy 2015
Provision related to connectivity Developer will have to bear the cost of construction of evacuation facility from solar project to APTRANSCO/DISCOM’s interconnection point. Section 4 i of AP Solar Power Policy 2015
R&D related Provisions Solar Parks shall contain separate zones for R&D Section 3 C of AP Solar Power Policy 2015
REGULATORY OVERVIEW
SPO (%) 2016-17 0.25 Section 3.1 of Renewable Power Purchase Obligation (Compliance by purchase of Renewable Energy / Renewable Energy Certificates) Regulations, 2012
2017-18 0.25
2018-19 0.25
Transmission and Wheeling charges Exempted for captive/third party sale of power Section 4. a.) of AP Solar Policy 2015
Distribution Losses Exempted for injection below or at 33 kV Section 4. b.) of AP Solar Policy 2015
Banking Banking charges @ 2% of energy injected. Drawls permitted from 1st April to 30th June and 1st February to 31st March of each financial year. Drawls during ToD peak hours not permitted throughout the year. Section 4. c.) of AP Solar Policy 2015
Open Access Regulations Open Access will be granted for the tenure of the project. In case of no response from Nodal Agency in response to application within 21 days, deemed Open Access will be granted. Section 4. d.) of AP Solar Policy 2015
Electricity Duty Exempted for all categories of developers Section 4. e.) of AP Solar Policy 2015
Cross-Subsidy Surcharge Exempted for third party sale for a period of 5 years from CoD Section 4. f.) of AP Solar Policy 2015
Connectivity related regulations The cost for construction of evacuation infrastructure from the project to the substation/interconnecting point of APTRANSCO or DISCOM shall be borne by the developer. Section 4. i.) of AP Solar Policy 2015
Feed-in-Tariff (INR/kWh) as defined by SERC INR 17.91/kWh (without AD) and INR 14.95/kWh (with AD) Point 2. of Amendment to APERC Solar Tariff Order dated 14.7.2010

 

Site Selection

Step Sub-Step DESCRIPTION Authority Reference
Details Activities Important factors to consider
SITE IDENTIFICATION AND PROJECT PRE-FEASIBILITY IDENTIFICATION OF SITE The first step in project design and development is the site identification. Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is working towards identifying about 10 acres of government waste land for industrial development. Andhra Pradesh Land Management Agency is also expected to setup a Land Bank in the state soon according to the New Land Allotment Policy of Andhra Pradesh, 2011. If land from this list is not chosen the category of the land has to be checked with the Revenue Department of the State. Further, one of the key factor in identification of a suitable site is to obtain the consent of the present owner of that piece of land, to sell. Further, the state will provide deemed Non-Agricultural status to the land on payment of applicable statutory fees. Suitability of a place includes factors such as suitable irradiation, access to site and availability of evacuation infrastructure.  This step is undertaken in conjunction with other analysis such as solar radiation analysis, infrastructure analysis etc.` 1. Identify a suitable piece of land   2. Obtain consent from current owners   3. Check the categorization of the land with the Revenue Department Revenue Department New Land Allotment Policy of Andhra Pradesh, 2011, Section 4. I of AP State Solar Policy 2015
SOLAR INSOLATION AND SHADOW ASSESSMENT Site specifications including level of solar irradiation at site, temperature and structures/obstacles which may cast shadows need to be checked initially. This assessment is done using ground level assessment or using reliable data from  NASA (https://eosweb.larc.nasa.gov/sse/RETScreen/) or NIWE(http://niwe.res.in/Docu/Data_Requisition_Form.pdf) which is particular for the designated area or location. Also it is recommended that for ascertaining accuracy of solar irradiation data, dedicated weather stations are erected at the site for local irradiation measurement and a minimum of 12 to 18 months of data is gathered for observation.
There are currently 6 solar radiation resource assessment stations under the National Institute of Wind Energy (NIWE). They are located at Kadiri, Kadapa, Guruzala, Chilakapalem and Rajahmundry. Data from these stations can be purchased by filling up the following form: http://niwe.res.in/Docu/Data_Requisition_Form.pdf
The following has to be checked :        #Global Horizontal Solar Radiation
#Diffused Horizontal Solar Radiation
#Direct Normal Solar Radiation
#Wind Speed/Direction
#Rain Accumulation
#Air Temperature
#Atmospheric Pressure (SLP) and
#Relative Humidity.
Technical advice is suggested for this level. NA Primary Research
POWER EVACUATION FEASIBILITY AND SITE ACCESSIBILITY The developer has  to consult and check on the interconnection voltage level with APTRANSCO/DISCOMs for the desired voltage level transmission corridor up to the project site. A project of less than or equal to 10 MW has to be connected at a voltage level of 11 kV or 33kV and all power plants above 10 MW have to connect at voltage levels of 132/220/400  kV. A grid feasibility study is done to evaluate the evacuation capacity of existing transmission system.
The evacuation feasibility study involves the following steps:
#Nearest feasible substation for interconnection
#Identification of interconnection point
#Voltage level
#Feeders and Bay available in the substation
#Right of Way
The following are the steps in obtaining power evacuation approvals:
Application to DISCOM -> Application form for APSPDCL.
Application form for APEPDCL.
Application fee-> 2,24,720 (Inclusive of Service Tax)
EMD/Security Deposit in the form of Bank Guarantee-> INR 2 Lakh/MW which shall be encashed in case of delay in commissioning
# The interconnection to the Sub station level has to be done at a specific voltage level                              # A transmission study has to be carried out to ensure that the nearest sub-station or the sub -station under consideration has adequate evacuation capacity to support the solar power plant being set up. APSPDCL, APEPDCL, APTRANSCO Primary Research
WATER AVAILABILITY/ CONSTRUCTION & POWER AVAILABILITY NREDCAP will facilitate obtaining of water resources from the concerned departments as part of the single window clearance mechanism with a facilitation timeline cap of 30 days NA NA NA Andhra Pradesh Solar Power Policy 2015
PROJECT REGISTRATION PROJECT REGISTRATION The project has to be registered with NREDCAP with a registration fee of Rs.1000 for capacities upto 5 KWp; Rs. 5,000 for capacities above 5 KWp to 100 KWp; Rs,10,000 for capacities above 100 KWp to 1000KWp and Rs.10,000 per KW for capacities more than 1000 KWp.
In addition, a facilitation fees of Rs 25 per kW shall be applicable for the Eligible Developer who seeks assistance from the Nodal Agency for obtaining single window clearance support.
# Application for registration of the project with NREDCAP
# Payment of the application fee
NREDCAP Andhra Pradesh Solar Power Policy 2015
LAND BLOCKING A project in the state can start project execution without formal approval after filing necessary application for conversion of category of land with the revenue department of the state. In case of Agricultural Land shall be deemed converted to Non-Agricultural status after filing for Non-Agricultural conversion status with the revenue department of the state and paying the statutory fees. The construction can begin right after filing the application.
In case of revenue land or private land, construction may start after obtaining the lease deed or sales deed respectively.
NA Revenue Department Primary Research
IN PRINCIPLE APPROVAL FOR GRID CONNECTION In-Principle approval has not been a requirement in the bids held under the Andhra Pradesh Solar Policy as the bids themselves incorporated identification of the nearest substation and connectivity arrangements. An in-principle grid connection approval may however be required for bids starting from the year 2015. Further, as per the Andhra Pradesh Solar Policy 2015, an online portal shall be developed by NREDCAP to facilitate applications and status updates related to all approvals and clearances required by developers. This portal may facilitate in-principle clearances as well. NA APTRANSCO, NREDCAP Section 5. of Andhra Pradesh Solar Policy 2015

 

Project Development

Step Sub-Step DESCRIPTION Authority Reference
Details Activities Important factors to consider
LAND/SITE ACQUISITION LAND AGREEMENT The process of land acquisition involves identifying a piece of revenue land and obtaining a government lease for the same through the following process:
Applications for allotment of land shall be made in the format prescribed by the
NREDCAP/Department of Energy and shall be submitted to the authorities specified by the
department.
b.   The department shall scrutinize the application following the norms prescribed,
and forward with their recommendations, to the Collector of the District within
15 days.
c.  The NOC from local authority shall also be insisted before scrutinizing
the application / proposal by the APLMA.
d.  The District Collector shall arrange for inspection of the land and for enquiry,
and forward the application with specific recommendations to the A.P. Land
Management Authority within 15 days along with market value.
e.   The A.P. Land Management Authority shall scrutinize the application / proposal
and make their recommendation to the Government within 30 days.
f.  The Government shall issue final orders on the application, as far as
practicable, within a period of 60 days.
g.  Applications for land allotment rece
ived by the Hon’ble Chief Minister or
Ministers shall be forwarded to the concerned administrative department for
processing as above
If the land is forest land then that is taken on lease from the forest department. Private land is purchased from a private individual or corporation
Signing of land agreement and demarcation of land # Need to hire agents and liaison officer to facilitate and understand the process
# Lack of ownership data, land demarcation records, maps and various local claims over the land. Clarity on land classification is also a concern
District Collector; Local Village Body; State Revenue Department New Land Allotment Policy of Andhra Pradesh, 2011
LAND CATEGORY CONVERSION PROCEDURE FOR LAND CONVERSION
The Revenue Divisional Officer needs to be approached for Land Category Conversion as per section 4 of Andhra Pradesh Agricultural Land (Conversion for Non-Agricultural Purpose) Act, 2006. The Revenue Divisional Officer upon receipt of requisite conversion fee and assessment of application shall grant the acceptance of application
APPLICATION PROCESS
The application for conversion of the Agriculture land for Non-Agriculture purpose shall be made in the form at Annexure-‘A’ of Andhra Pradesh Agricultural Land (Conversion for Non-Agricultural Purpose) Act, 2006 available at this link.
CONVERSION FEES
For lands located in Greater Hyderabad Municipal Area, a conversion fee @ 5% of basic value of land has to be paid.
For lands located in areas other than that mentioned above, a conversion fee @ 9% of basic value of land shall be paid.
#Complex procedure of conversion in case of revenue land, application needs to be routed through various state nodal agencies. Need to hire agents and liaison officer to facilitate and understand the process, though amendments have been made to relevant state laws but its effect on ground needs to be visible
# Lack of ownership data, land demarcation records, maps and various local claims over the land. Clarity on land classification is also a concern
District Collector; Local Village Body; State Revenue Department Section 4 of Andhra Pradesh Agricultural Land (Conversion for Non-Agricultural Purpose) Act, 2006
TRANSMISSION AGREEMENT APTRANSCO has to be paid engineering charges for monitoring the construction of the transmission line to the substation and pooling substation. The supervision fee has been waived off in AP but other fees such as engineering fees still have to be paid to APTRANSCO which is roughly equal INR 1.6 Lakhs/MW DISCOMS Primary Research
CLEARANCES AND APPROVALS CONSENT TO ESTABLISH Solar PV projects are exempted from taking any Pollution Control Board (PCB) related clearances such as Consent to Establish under the AP Solar Policy 2015 Pollution Control Board Section 4 o.) of AP Solar Policy 2015
CEIG DRAWING CLEARANCES The following drawings are to be furnished:

1) Topographical map showing location of the power plant/unit.

2) Single line schematic of entire project

3) Sectional plan and elevations

4) Earthing scheme

Documents required to be submitted along with the drawing are,

1) Govt. order for having obtained permission for setting up of power plant.

2) Power purchase agreement copy.

3) Scheme of grid synchronization.

4) Power Evacuation infrastructure details including sending and receiving end equipment’s.

Andhra Pradesh State Electrical Inspectorate Indian Electricity Rules 1956  (Section 47 a):

Construction

Step Sub-Step DESCRIPTION Authority Reference
Details Activities Important factors to consider
TEMPORARY ELECTRICITY CONNECTION Prior to the start of construction at the site, a temporary electrical connection from the local/state distribution utility must be taken. This is to offset the cost of electricity in case of using a diesel generator during the construction period.

An application endorsed by State Nodal Agency NREDCAP needs to be submitted by the developer to the local utility for permission

For sites within the supply area of APEPDCL, the following form needs to be filled and the Temporary field needs opt be ticked: Form
For areas in the supply area of APSPDCL, the list of documents as given in the following link need to be furnished at the nearest Customer Service Centre: Link
NA APSPDCL, APEPDCL APSPDCL, APEPDCL
WATER PERMIT The water requirements of the industry can be met from the nearest source available besides utilizing
ground water. If the location of the industry is in industrial estate/area, APIIC will supply water and in
all other cases, applicant has to apply for sanction of water from the nearest source. For utilizing
ground water, no permission is required.   The procedure for sanction of water supply from different
sources is indicated below
Procedure for getting water supply and connection from Hyderabad Metropolitan Water Supply  & Sewerage Board (HMWS&SB):

Entrepreneur requiring to apply for water supply & connection from HMWS&SB shall submit common
application form-I (Part-A) with the following documents to General Manager, DIC in case of SSI or
to Commissioner of Industries, Andhra Pradesh, Hyderabad in case of L&M industries under Single
Window Act.
1.          Part A of Form-I                                                                              ..           2 copies
2.          Registered sale deed of land                                                            ..           1 copy
3.          Municipal Sanction plan                                                                 ..           1 copy
4.          Municipal Assessment/ Tax Receipt                                               ..           1 copy
(in case of existing industry)
5.          When applying for additional or                                                     ..           1 copy
enhancement of connection, the copy of the
latest payment of the existing connection to be enclosed
6.         NOC from local body whenever required                                       ..           1 copy
7.          Site plan with land marks                                                                ..           1 copy
8.          Process fee of Rs.500/- for 15 mm size
and Rs.1, 000/- for other sizes by way of D.D.
drawn in favor of M.D., HMWS&SB, Hyderabad
9.          Fees to be paid as per the estimates sanctioned

Procedure for sanction of water supply from Irrigation Dept.:

Entrepreneur requiring to draw water from irrigation sources (river, public tanks, etc.)  shall submit
common application form-I (Part-A) with the following documents to General Manager, DIC in case
of SSI or to Commissioner of Industries, Andhra Pradesh, Hyderabad in case of L&M industries
under Single Window Act.
1.          Part A of Form-I                                                                 ..           2 copies
2.          Quantity of water required                                                 ..           …………………………………
3.          Name of  Source                                                                 ..           …………………………………
4.          Particular of other schemes including drinking water scheme
(separate sheet to be attached)

NA local authorities/ State Irrigation Department Section III. 3 of Outreach Brochure for Investors in AP by Centre for Good Governance
Link.
LABOR CLEARANCE Before employment of labor at site, Registration of Licenses needs to be done with the Labor Department and the time limit for getting the same is stipulated to be 7 days This can be done either online by registering on the following portal and following subsequent steps: Online Portal
Or this clearance can be achieved by approaching the AP Labor Department directly.
NA State Labor Department (Labor inspector) Industrial Employment Act 1936
PROJECT COMPLETION AND COMMISSIONING CONSENT TO OPERATE NA NA NA Primary Research
CEIG CLEARANCE THE CEIG Inspector inspects three components of the system:
1. The solar power plant
2. The pooling substation
3. The transmission line constructed to the nearest substation
Calibration reports, site test results, equipment manufacturer testing reports, etc. shall be sent to the jurisdictional officer of the Electrical Inspectorate for inspection. The construction waste must be cleaned and dumped in a designated area as per the State Pollution Control Board. It should not be left behind after the commissioning at the plant site.

A letter stating the project completion is sent by developers to the concerned agencies APTRANSCO / NREDCAP / APERC / MNRE etc.

The testing of equipments and grid connectivity must be informed to the APTRANSCO / NREDCAP / APERC / Distribution Utility and all tests be done in presence of representatives from the concerned agencies and duly recorded.

CEI Indian Electricity Rules 1956  (Section 47 a)
GRID INTERCONNECTION AND METERING The project developer needs to commission the project within the timeline specified in the PPA

EPC to undertake the testing of the equipment and take Utility Approval for substation connection. The Final Acceptance Test is designed to check the status of the plant and the proper functioning of the system and system components. Once it is verified that the plant complies with requirements and testing, the plant will be taken over by the owner from the EPC contractor.

All warranty relevant data or testing shall be approved or tested prior to warranty ending to raise final claims by the developer and the EPC. Further, the distribution utility shall provide the necessary approvals and infrastructure for evacuation of power generated.

At the time of commissioning, the developer is to draw up a punch list with the EPC contractor. This comprises of the scope of work that has been partially completed/not completed but does not impact performance or output of plant. The punch list needs to be completed by EPC contractor at a future date within a mutually agreed timeframe with the developer.

The process of project commissioning will follow:
##Site inspections
##Mechanical Completion Test
##Inverter Commissioning Test
##Performance Test.

DISCOMS Primary Research

 

Support Schemes

Incentive Element Description Authority Reference
OPEN ACCESS AND T&D CONCESSIONS Transmission and Wheeling charges Exempted for captive/third party sale of power APTRANSCO/DISCOMs Section 4. a.) of AP Solar Policy 2015
Distribution Losses Exempted for injection below or at 33 kV DISCOM Section 4. b.) of AP Solar Policy 2015
Banking Banking charges @ 2% of energy injected. Drawls permitted from 1st April to 30th June and 1st February to 31st March of each financial year. Drawls during ToD peak hours not permitted throughout the year. DISCOM Section 4. c.) of AP Solar Policy 2015
Electricity Duty Exempted for all categories of developers DISCOM Section 4. e.) of AP Solar Policy 2015
Cross-Subsidy Surcharge Exempted for third party sale for a period of 5 years from CoD DISCOM Section 4. f.) of AP Solar Policy 2015
OTHER SUPPORT SCHEMES Cross Subsidy Surcharge exempted for Third Party Sale of Power for five years since CoD NREDCAP AP Solar Policy 2015