See Full Document Text
RReeggiisstteerreedd NNoo.. HHSSEE--4499//22001166
AMARAVATI, PARTA MI A REAXVTARTAI, OTUREDSIDNAAYR, MYAY 23, 2023 --x--
TUESDAY, MAY
No.583 AMARAVATI, TUESDAY, MAY 23, 2023 G.241
23, 2023
NOTIFICATIONS BY GOVERNMENT
--x--File No.ENE01-APRE/19/2022-MLO-ENE
GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
Energy Department –Formulation Andhra Pradesh Pumped Storage Power
Promotion Policy -2022-Orders –Issued.
ENERGY (POWER.II) DEPARTMENT
G.O.Ms.No.25 Dated:20-12-2022.
ORDER:
Government hereby notify the following Andhra Pradesh Pumped Storage
Power Promotion Policy-2022 for promotion of Pumped Storage Hydro Projects
in the State: -
1. Preamble
1.1 Today, world is in the midst of a major transition to clean energy due to
growing concerns of climate change and global warming. The 2015 Paris
agreement, followed by the CoP 26 summit (26th Conference of Parties) held
during 2021, under the United Nations Framework Convention on Climate
Change (UNFCCC) targeted to limit the increase in global warming by 2oC and
achieve “Net Zero” emissions by the year 2050. Honorable Prime Minister of
India, Shri Narendra Modi ji on his part presented “Panchamrit” to deal with
this challenge and pledged to achieve “Net Zero by 2070”.
1.2 Realizing the importance of Renewable Energy (RE) in combating the
climate change and enhancing the energy security, Government of India has
committed to install about 50% cumulative capacity from non-fossil fuel-based
energy resources by 2030. Further, in order to encourage the installation of RE
plants, Ministry of Power (MoP) has introduced Renewable Purchase
Obligations (RPO) for the DISCOMs to procure 43.33% of total energy
requirement from RE sources by FY 2030.
1.3 Renewable Energy has started playing an increasingly important role
worldwide in augmentation of grid power, providing energy access, reducing the
consumption of fossil fuels thereby mitigating the climate change challenges.
The Government of India has also committed to meet 50% of the energy
requirements from renewables and increasing renewable energy capacity to 500
GW by 2030. Further, in order to encourage the installation of RE plants,
Ministry of Power (MoP) has introduced Hydro Power Purchase Obligations
(HPO) and Energy Storage Obligations (ESO) for the DISCOMs in the country.
1.4 Andhra Pradesh is playing a pivotal role in supporting Government of
India’s various initiatives in the energy domain and has been rolling out
multiple programs, policies and incentives to accelerate development of RE
sector in the State. With the expected variable RE capacity addition in the near
Page 1 of 8File No.ENE01-APRE/19/2022-MLO-ENE
future particularly intermittent sources such as solar and wind due to the
promotional policies of Govt. of India and Govt. of Andhra Pradesh, there is a
need to manage concerns related to balancing power grid and its security and
stability and Energy Storage Systems will play an important role in addressing
variations in Regeneration. Identifying the importance of Energy Storage
Systems, Ministry of Power (MoP) has introduced Energy Storage Obligations
(ESO) for the DISCOMs to procure 4% of total RPO requirement through
Energy Storage systems by FY 2030.
1.5. Out of all storage technologies, Pumped Hydro Storage Project (PSP) is a
well established and matured technology and can play an immensely important
role in facilitating improved energy security and transition to a lower cost, low
carbon electricity market that will require fexible, dispatchable, as well as peak
power capacity.
1.6 Andhra Pradesh is in forefront in the country in identifying potential PSP
sites of 33,240 MW capacity near to the existing reservoirs and of-river
locations for promotion of Pumped Storage Hydro Power Projects. Taking into
consideration the RE capacity addition targets, HPO targets and the huge PSP
potential within the State, the State Government in order to encourage, develop
and promote PSP projects by developers decided to notify “Andhra Pradesh
Pumped Storage Hydro Power Projects Policy 2022”.
2. Objectives
i. To harness the potential of 33 GW PSP capacity available in the
State
ii. To support in meeting Renewable Purchase Obligation targets set by
Central government for balancing/ peak requirement of power at
National and State levels.
iii. To facilitate development of Pumped Storage Hydro Power Projects
(PSP) within the state.
iv. To attract private investments, generate revenue to State
Government, generate employment and improve State economy.
v. To facilitate private investments for developing PSP projects in fast
track mode.
vi. To procure power from Pumped Storage projects plants by the
DISCOMs, if required, to meet HPO, ESO etc.
3. Operative Period
The policy shall come into operation with efect from the date of issuance
and shall remain applicable for a period of ten (10) years or shall remain in
force till such time a new policy is issued. Since the Pumped Hydro Storage
Page 2 of 8File No.ENE01-APRE/19/2022-MLO-ENE
Project (PSP) is a well established and matured technology out of all storage
technologies, State Government have already granted permission to certain
Developers for establishment of such projects and they have taken steps to
implement the Projects. The Policy shall also cover these Pumped Storage
Projects already allotted by the Government in the recent past which are being
implemented by the respective Developers.
4. Eligible Developers
Any developer setting up the PSPs either for Captive/ Group Captive use
and/ or for selling of electricity to the utilities or third parties within the State
or export to other States, in accordance with the relevant Central/State
regulations and / or Standard Bidding Guidelines (SBGs) issued and amended
from time to time.
5. Resource Allocation
Project may be identifed by either the Nodal Agency or the Developer. The
allocation of resources to the developers shall be done as per the following
process,
a. The Developer shall submit Detailed Proposals to the Nodal Agency along
with project details, technical & fnancial strengths, timelines for
completion, etc. The proposals, after scrutiny by the Nodal Agency, will be
placed before the AP State Investment Promotion Committee (SIPC) and AP
State Investment Promotion Board (SIPB) for consideration.
b. In case of sites identifed by the Developer, the Developer shall seek
approval of the Nodal Agency after paying necessary charges as detailed
out in this policy.
c. The Developer shall obtain all statutory clearances that are required from
Central and State Governments. The Nodal Agency will extend necessary
support to get the clearances.
d. The Developer shall bear the entire cost of the project from investigation to
commissioning and subsequent operation and maintenance.
e. Nodal Agency shall not bear liability of any kind on part of Developer
i. Detailed Project Report(DPR):
a. For the sites identifed by Nodal Agency, Process of DPR
preparation is undertaken by the Nodal Agency including
clearances till date of allotment of project to the Developer.
Page 3 of 8File No.ENE01-APRE/19/2022-MLO-ENE
b. Developer will take over the responsibility of balance process of
DPR preparation and obtaining clearances from the date of
allotment of project by paying the cost incurred by Nodal Agency
till the date of allotment of the project and up to the date the
responsibility of DPR & clearances shall stand transferred to the
Developer.
c. Nodal Agency will work with the developer for balance process of
DPR preparation and obtaining remaining clearances.
ii. Timeline for Completion of Project:
a. Time for completion of projects for which DPR is under progress
shall be six (6) years from the date of allotment of project by Nodal
Agency and handing over of entire revenue land available, if any, in
the project site.
The various activities of the project shall be completed as per the
following timelines:
b. Preparation of DPR and obtaining of clearances/ approvals(M1):
Two (2) years from the date of allotment of project by Nodal Agency
c. Land acquisition (M2):100% within Three (3) years from the date of
allotment of project by Nodal Agency
d. Financial closure (M3): Within three (3) years from the date of
allotment of project by Nodal Agency.
e. 50% of Civil, E&M and H&M works (M4): Within fve (5) years from
the date of allotment of project by Nodal Agency
f. 100% of works and commissioning of the project (M5): Within
six (6) years from the date of allotment of project by Nodal Agency
and handing over of entire revenue land available, if any, in the
project site.
iii. Periodic Review of the Project:
a. Nodal Agency in an endeavor to complete the project within six (6)
years shall undertake periodic reviews and shall obtain project
progress reports from the Developers.
b. Nodal Agency may engage Project Management Consultants for
managing various aspects of PSPs including development,
planning, strategy, and implementation for timely completion of the
project.
Page 4 of 8File No.ENE01-APRE/19/2022-MLO-ENE
6. Utilization of Power
It shall be the responsibility of the project developer to identify
customers for storage services from these PSP projects.
7. Land Facilitation to the Developer
i. Nodal Agency will identify land (private, government, forest and
compensatory aforestation land) and start the process of aggregating
the land till date of allotment of project to the Developer.
ii. Developers will have a mix of following options:
a) Government Land:
Allocation of Government land for the project components as well
as for compensatory aforestation purpose shall have the following
options:
i.Lease: Lease rate of INR 31,000 per acre per year with an
escalation of 5% every two years during the project period (40
years operation period and 6 years construction period, totaling to
46 years).The lease rate at the end of the project period will be re-
determined by the Government.
ii.Alienation: Government land will be alienated to the developers
as per the decision of the Government.
b) Forest land:
Developer shall apply for diversion of the forest land as per
procedures/guidelines laid by respective Departments and by
paying applicable charges in full, if any.
c) Private land:
Nodal Agency shall facilitate acquisition of private land on either
lease basis or acquisition.
iii. In case of land lease, the lease rate of INR 31,000 per acre per year will
be charged to the Developer with an escalation of 5% every two years
during the project period. Out of Rs. 31,000 per acre per annum, an
amount of Rs. 30,000 per acre per annum will be paid to the private land
owner. An amount of INR 1,000 per acre per annum will be remitted to
the State Govt.
iv.In case of acquisition of private land, mutually negotiated terms and
conditions between the private Land owner and the Developer shall
prevail.
Page 5 of 8File No.ENE01-APRE/19/2022-MLO-ENE
8. Charges to be Paid by the Developers
i. Green Energy Development Charge: Developers shall pay green energy
development charges from CoD @ INR 1 Lakh per MW per year for frst 25
years and INR 2 Lakh per MW per year for the remaining period of the
project.
ii. Facilitation Charges (One-Time): Developers shall pay INR 50,000 per MW
to the Nodal Agency towards facilitation charges.
iii. Local Area Development: Developers shall follow the guidelines issued by
the Government of India from time to time for promotion of Hydro Power
Projects.
iv. Rehabilitation & Resettlement: Developers shall mandatorily follow the
provisions of Rehabilitation & Resettlement Policy of the Government of
India and Government of Andhra Pradesh scrupulously at their own cost.
9. Incentives
i. Nodal Agency will support and facilitate the project for availing grants of
special category projects under Central Government schemes.
ii. Nodal Agency will facilitate the project for availing benefts provided as per
National Energy Storage Policy without any fnancial commitment from
Govt. of Andhra Pradesh.
iii.PSP projects shall be treated as eligible industry under the Mega Industry
schemes administered by the Industries Department and incentives
available to industrial units under such schemes shall be made available.
iv.PSPs shall be exempted from obtaining any NOC/Consent for
establishment under pollution control laws from AP Pollution Control
Board.
v. The services of single desk portal shall be made available for obtaining
time bound statutory clearances for PSP projects.
vi.Land allocated for construction of PSP projects shall be accorded deemed
Non- Agricultural (NA) status on payment of applicable statutory fees.
vii.On request of developer, for utilizing the expertise,
APGENCO/APTRANSCO may provide services, subject to availability, in
the areas of planning, construction and operation of PSPs, Nodal Agency
shall facilitate the consultancy services of APGENCO/APTRANSCO.
10. Input Power
i. In case the Developer is interested to set up captive solar/wind power
plant for the purpose of meeting input power requirement for PSP, the
Nodal Agency shall facilitate allotment of project as per the prevailing
terms under ‘Andhra Pradesh RE Export Policy, 2020’, ‘Andhra Pradesh
Wind Power Policy, 2018’ and ‘Andhra Pradesh Solar Power Policy,2018’.
ii. Energy Banking facility will not be extended for such captive solar/wind
power plants.
Page 6 of 8File No.ENE01-APRE/19/2022-MLO-ENE
11. Evacuation
i. Connection to Central Transmission Utility (CTU) Network:
a. In case the project Developer proposes to export power generated to
other States by injecting to the CTU substation, the transmission line
from generation point to the CTU shall be laid by the Developer at his
own cost by following the relevant procedures/regulations. All
liabilities on account of connecting to CTU shall be borne by the
Developer.
ii. Connection to State Transmission Utility(STU)network:
a. In case the project Developer proposes to utilize the power within the
State, APTRANSCO shall extend the connectivity to its intra state
transmission system as per the prevailing procedures/regulations.
b. The project developer shall lay the transmission line from generation
point to the grid substation at his own cost under the supervision of
APTRANSCO and hand over the same to the APTRANSCO.
Alternatively, the connecting line may be built by APTRANSCO at the
cost of the Developer if the Developer so chooses.
12. Nodal Agency
i. New & Renewable Energy Development Corporation of Andhra Pradesh
Ltd. (NREDCAP) shall act as a Nodal Agency under this policy.
ii. The Nodal Agency shall be responsible for the following activities:
a. Identifcation of PSP projects within the State
b. Preparation of DPRs for the identifed PSP projects
c. Facilitate land aggregation for the Developer.
d. Assist the Developer in obtaining all the statutory clearances/
approvals required for implementation of the projects
e. Facilitate water allocation on priority as per the Industrial Water
Supply Policy / Guidelines and subject to guidelines issued by the
Water Resources Department.
13. Interim Review
State Government may undertake interim review of this policy as and when
need arises in view of any technological breakthroughs or to remove any
inconsistency with Electricity Act 2003, rules and regulations made there
under or any Government of India policy.
Page 7 of 8File No.ENE01-APRE/19/2022-MLO-ENE
14. Power to Remove Difculties
If any difculty arises in giving efect to this policy, State Government
(Energy department) is authorized to issue clarifcations as well as
interpretation to such provisions, as may appear to be necessary for
removing the difculty either on its own motion or after hearing those
parties who have represented for change in any provision.
15. Miscellaneous
All projects which are already allotted before notifcation of this policy will be
aligned as per the provisions of this policy.
16. The Vice-Chairman & Managing Director, NREDCAP, Tadepalli, Guntur
District shall take necessary action accordingly.
17. This order issues with the concurrence of the Finance Department
videU.O.NO.FIN01-FMU0ASD(IIE)/18/2022-FMUIIEIC (Computer.No:1917037),
dated:5-12-2022.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
K. VIJAYANAND
SPECIAL CHIEF SECRETARY TO GOVERNMENT
To
The Vice-Chairman & Managing Director,
New and Renewable Energy Development Corporation of Andhra Pradesh
Ltd.,Tadepalli, Guntur Dist.
The Managing Director, APGENCO, Vijayawada.
The Chairman & Managing Directors, APTRANSCO, Vijayawada.
The Managing Director, APSPCL, Tadepalli, Guntur District.
The Member-Convenor, APPCC, Vijayawada.
The Chairman & Managing Director, APSPDCL/APCPDCL/APEPDPCL,
Tirupati/Vijayawada/Visakhapatnam
The Special Chief Secretary to Govt, Revenue/EFS & T Department
The Principal Secretary to Government, Water Resources Department
Copy to:
The Secretary to Government of India.
Ministry of Power/MNRE, New Delhi.
The OSD to Minister for Energy, EFS & T, Mines and Geology,
The Secretary to CM.
The P.S to Special Chief Secretary to Government, Energy Dept.
SF/SC.
//FORWARDED::BY ORDER//
SECTION OFFICER
Page 8 of 8