It will also develop 4GW of solar parks to encourage project development.
The Indian state of Andhra Pradesh targets 5GW of solar capacity additions for the next five years to meet the growing demand for power in the state, a government circular revealed.
According to a government circular, a five-year policy will allow solar power projects commissioned during its operative period to receive incentives for 10 years. A nodal agency will judge whether the proposed project is technically, financially and commercially feasible or not.
Distribution companies (Discoms) are expected to procure 2GW of solar power from these projects by signing 25-year power purchase agreements (PPA) with developers. The projects will also be set up for captive use or third party sales.
In line with the policy, Andhra Pradesh will also develop solar parks with a total capacity of 4GW.
Incentives for developers from the state government include energy banking for all 12 months of the year, intra-state open access clearance for the whole tenure of the project, eligibility for renewable energy certificate (REC), and grid connectivity.
Andhra Pradesh also intends to promote solar manufacturing by encouraging incentives such as a 10-year exemption from electricity duty, preference for offtake of power, PE connectivity, and extension of energy banking facility for the projects developed by the manufacturers.
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