Andhra eyes Rs 10 lakh Cr investment in clean energy, net zero by 2047

Andhra Pradesh is eyeing a Rs 10 lakh crore investment in the clean energy sector in the state as it unveiled a new policy that incentivises investments across solar, wind and round-the-clock renewable energy projects to achieve net zero carbon emissions by 2047.

Andhra Pradesh Chief Minister N Chandrababu Naidu unveiled the AP Integrated Clean Energy (ICE) Policy that envisages incentives ranging from hassle-free land acquisition at reasonable price to power subsidy to certain sectors.

The ICE Policy will involve a proposed investment outlay of Rs 10 lakh crore, creating direct and indirect employment for 7,50,000 workers, the policy document said.

The policy looks to leverage the state's vast renewable energy potential across wind, solar and hybrid sources, storage capabilities through pumped storage projects, a long coastline, six operational ports (with four under development) and skilled manpower availability as it pivots energy transition.

The Andhra Pradesh government is committed to promoting generation from renewables by creating a more conducive policy and investment framework to spur competition and private participation in the sector while maintaining a balance in the interests of all stakeholders, it said.

The police will aid in setting up projects that generate electricity from abundant sunlight and wind energy as well from pump-storage projects on water bodies.

Andhra Pradesh is targeting 78.5 gigawatts of solar capacity, 35 GW of wind energy, 22 GW of pumped storage and 1.5 million tonnes per annum of green hydrogen manufacturing capacity. It is also looking to set up 25 GWh of battery energy storage as well as projects to manufacture ethanol and biogas from biomass and 5,000 EV charging stations.

It is also looking at 25-30 GW of cleantech manufacturing that will create jobs for the local population.

To develop relevant skills in our workforce, the University for Green Energy and Circular Economy (UGC) will be established in collaboration with the government of India and industries under PPP (Public-Private Partnership) Mode, it said.

Clean Energy Knowledge & Skill Development Center (CEKSDC) will be formed to serve as a knowledge and training hub and enable partnerships with academia, think tanks, and industry.

The incentives in the policy include concessional land lease for all clean energy projects as well as renewable energy component manufacturing units. Stamp duty will be waived for mini-hydro, pump storage projects, battery storage, biofuels and manufacturing units while capital subsidies provided for battery storage, green hydrogen, biofuels and renewable energy manufacturing projects.

Electricity duty and other open access charges will be waived

Other incentives include a capital subsidy for electrolyser and biofuel projects, reimbursement of net state GST for 5 years, waiver of ED and reimbursement/waiver of intra-state transmission charges.

Capital subsidy of up to 25% is being offered for renewable energy manufacturing projects as also reimbursement of net state GST, off-take guarantee, and power subsidy of Re 1 per unit for 5-10 years.

New and Renewable Energy Development Corporation Of Andhra Pradesh (NREDCAP) will be the state nodal agency facilitating access to land parcels, and will support power power evacuation and open access, help in availing central government incentives, facilitate relevant approvals and clearances and support capacity allocation.

The policy will be operational for five years.

The ICE policy is in line with Andhra Pradesh's ambitious target of net zero carbon emission by 2047, the document said, adding with renewed efforts under the policy, Andhra Pradesh will attract investment for the next 5 years, scaling up its renewable energy capacity multifold and claiming its rightful place as a leading state in the energy transition.