Industries in Andhra Pradesh want to buy power from open market | SupportBiz


Industries in Andhra Pradesh want to buy power from open market

Energy deficient Andhra Pradesh on Wednesday issued its first solar power policy and has invited companies to invest in solar power generation in that state. The state government should, in the meantime, allow small, midsize and large enterprises buy power from the open market, according to a trade body.

Poor monsoon rains have robbed the state of hydel power. Shortages in coal supply at thermal power stations; very little gas supply at gas-based power projects and increases in power consumption have led to an 18% power deficit situation in the state, according to The Federation of Andhra Pradesh Chambers of Commerce & Industries (FAPCCI).

The solar policy is a positive step in solving the state’s energy crisis, said Devendra Surana, president, FAPCCI.  But for now, industrial units should be allowed to buy ‘expensive’ power from the open market.

“The purchase price of power in the open market could work out to nine-and-a-half rupees per unit. Power from state-run distribution companies is priced at six rupees per unit. Small to midsize companies many not be comfortable paying more for power but it is better than having no power,” Surana said.

The New and Renewable Energy Development Corporation of Andhra Pradesh will implement the solar policy.

The state does not plan to levy wheeling and transmission charges on solar power generated for captive use, or for sale to a third party, within the state. Solar power sold outside the state will attract charges as per APERC regulation, news reports said.

Andhra Pradesh enjoys an average of 300 sunny days a year and solar insolation, or solar radiation energy received at a particular location, hovers between 5.5-6KWh per square metre – factors that will aid in the development of solar power projects, news reports said.

IIndustrial units across the state suffer a 50 percent power cut, said Surana. “(The power situation) is bad. Most of the small to midsize industrial units will have to shutdown if this situation continues,” Surana said.