Related Stories

With eyes set on solar energy, Andhra Pradesh to transform state as renewable energy hub

Published May 4, 2015, 12:53 am IST
Updated Mar 29, 2019, 7:21 am IST
The state aims to develop 1,000 MW solar power parks in Anantapur and Kadapa
Andhra Pradesh Chief Minister Chandrababu Naidu. (Photo: PTI/File)
 Andhra Pradesh Chief Minister Chandrababu Naidu. (Photo: PTI/File)

Hyderabad: Andhra Pradesh government has decided to implement a comprehensive action plan to make the state a renewable energy hub in the next four years.

As part of this plan, the government has contemplated to achieve 5,000 MW solar power and 4,000 MW wind power by 2019 to meet the twin objectives of energy security and clean energy considerations, an official release issued here said.


Impressed with the new solar and wind policy, KFW, a German Bank, has agreed to sanction Rs 515 crores at concessional rate of interest towards green energy corridor.

The AP government is now contemplating to constitute a taskforce for expediting renewable energy projects, it said.

Secretary (Energy) Ajay Jain, discussed with concerned officials the impact of solar and wind projects and the steps to be initiated by power utilities for completion of green energy corridor with an estimated cost of Rs 1,289 crores, with the support of Centre and international financial institutions.


Jain said that Andhra Pradesh Chief Minister N Chandrababu Naidu has thanked the Centre for sanctioning Rs 515 crores grant for evacuation of wind power and green energy corridor.

The APTRANSCO and Discoms would soon initiate steps to mobilise the balance investments from Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).

The Discoms would procure around 2,000 MW of solar power capacity in a phased manner within the next 4 to 5 years and they would enter a long-term Power Purchase Agreement (PPA) of 25 years with developers who are selected, based on a competitive procurement process.


The government has initiated all measures to develop the solar park with a capacity of around 2,500 MW, with support of Centre, public undertaking sectors like National

Thermal Power Corporation (NTPC), NVVL, Ministry of New and Renewable Energy (MNRE) etc, he said.

The state is now contemplating to develop 1,000 MW solar power parks in Anantapur, Kadapa and Kurnool districts, the release said.

A solar park shall consist of various zones like solar power projects, manufacturing zones, R&D and training centres.

The state government will extend all facilities and fiscal incentives provided by Central government/ National Solar Mission to the manufacturers in solar parks, the release said, adding, special purpose vehicle(s) will be set up 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.

K Vijayanand, CMD of APTRANSCO, said the Centre has given environmental clearances for Krishnapatnam and Vijayawada Thermal Power Stations (VTPS), which paves the way for the state to enhance the generating capacity to meet future requirements of Andhra Pradesh, the release added.

Location: Andhra Pradesh