The State government’s tender for development of solar power plants with 6,400 MW capacityfor uninterrupted power supply to the farm sector, with resulting in securing close to 14,000 million units of power per annum at a tariff of ₹2.48 per kWh. It is significantly lower than the tariff at which AP DISCOMs are procuring power. The average power procurement cost of the State as of now is approximately ₹5.20 per kWh. Therefore, the government has formulated the policy to procure power from solar power projects of 6,400 MW capacity to be set up in the State.
Build–operate–transfer (BOT) basis
The proposed solar plants are conceived on BOT basis. The plants will be transferred to the State after the expiry of the Power Purchase Agreements (PPAs). At the time of transfer, the plants will be operating at 18% capacity utilisation factor ensuring plentiful supply of power at a low cost.