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ARTICLE · 14 JANUARY 2020

AP Government Amends Wind – Solar Hybrid Power Policy 2018

The amendment states that all land allotment done by the AP Government will be done only on a leasehold basis.

IndiaEnergy and Natural Resources

On November 18, 2019, the Government of Andhra Pradesh (AP Government) amended its Wind – Solar Hybrid Power Policy 2018 (AP Power Policy). This amendment was in response to a statutory audit which reported an abnormal spurt in the cost of purchasing power. The AP Government has made the amendments in order to address the deteriorating financial position of the state's power distribution companies (APDISCOMS).

What are the key amendments made?

  • Transmission and Distribution charges for wheeling of power

Before the amendments, the AP Power Policy provided incentives in the form of exemption of payment of the transmission and distribution charges (only for connectivity to the nearest Central Transmission Utility (CTU) via the State Transmission Utility (STU) network) for inter- state wheeling of power. Subsequent to the amendment, the Andhra Pradesh Electricity Regulatory Commission (APERC) would now determine the transmission and distribution charges to be

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