The state power utilities are going to select private developers as well as private procurers for 1,000 Mw solar power projects, which the government wants to be established by June, 2013.
The Andhra Pradesh government has come up with this novel idea to ensure a buyer-seller link outside the state power utilities to minimise the subsidy burden.
According to the guidelines issued by the AP energy department, the discoms will have to include the cost of solar power in their filings with the state electricity regulatory commission (APERC). However, the extra cost to the extent not covered by tariff order will have to be recovered through sale at the rate at which it was procured.
In case the solar power is not fully subscribed to by the private industry, the government will bear the differential between the tariff allowed by the regulator and the actual cost paid to the developers by the power utilities for the remaining power.
The government orders, however, do not permit the prospective solar power developers to set up their project at a location of their choice but only under specified sub-stations to be notified by APTransco, a release stated on Wednesday.
