The Union Power Ministry has assured Andhra Pradesh that the 1000 MW solar plant coming up in Kurnool district would be part of the bundled power scheme with a 500 mw thermal power project output to be clubbed to bring down the overall tariff.

The tariff would be lower when thermal and solar power gets bundled. The Centre has also assured to dedicate 90 per cent of the Anantapur Ultra Mega Solar Park for the State. The first phase of 250 MW will be completed by March 2016 and remaining 750 MW by Dec 2017.

The entire power thus generated would be used up in Andhra Pradesh. This will be the second fully dedicated 1000 MW power plant of the State. The 1000 MW NTPC Simhadri thermal power plant, set up in the 90s, was also fully dedicated to AP.

During a meeting the State Chief Minister N Chandrababu Naidu had with Piyush Goyal, Union Power Minister, late last week, the latter assured to extend support to set up an Energy University focusing on research and development, energy efficiency and conservation and renewable sources.

A third of the funding for project will be borne by Andhra Pradesh Government and its power utilities, another third by the Centre, and the rest by public sector undertakings such as NTPC, PGCIL, PFC and REC.

According to Ajay Jain, State Secretary, Energy, prominent companies like Fuji Electronic Company Ltd., Mitsubhishi Motors Corporation and Soft Bank have expressed interest to invest in the State.

Jain said it is proposed to make Andhra Pradesh a ‘power cut free state’. Providing a major thrust to the renewable energy sector in the State, AP is planning to establish 5030 MW of solar and 4150 MW of wind energy projects over the next five years.

In addition to 2000 mw of solar power through two parks, the Government has accorded clearance to APGenco for setting up of 500 MW solar park. Given the potential for Solar energy, the State is contemplating to establish another 500 MW solar park in Anantapur District.