Andhra Pradesh Unveils Guidelines for Clean Energy Policy
POWER & RENEWABLE ENERGY

Andhra Pradesh Unveils Guidelines for Clean Energy Policy

The Andhra Pradesh Energy Department has issued detailed operational guidelines under the Integrated Clean Energy Policy 2024, covering resource allocation, land allotment, grid connectivity, open access, banking facilities, project migration, fees, and incentives. These guidelines aim to streamline approvals, accelerate project implementation, and enhance the state's renewable energy landscape.

Resource Allocation and Project Approvals The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) has developed a unified digital portal for granting approvals and allocating resources for clean energy projects. Developers must submit applications online along with the required documents and fees. Each submission is time-stamped and processed in order of receipt.

Projects up to 40 MW capacity will be approved by the State Nodal Agency (SNA) within 14 days, while larger projects will be reviewed by NREDCAP before being forwarded to the State Investment Promotion Committee (SIPC), the State Investment Promotion Board (SIPB), and the Andhra Pradesh government for final approval. If two developers apply for the same resource, priority will be given based on the highest rupee-per-acre value addition.

Land Allotment and Lease Agreements For government or revenue land, clean energy developers (excluding biofuels and green hydrogen hubs) must pay Rs 31,000 ($355) per acre annually, with a 5% escalation every two years. Lease agreements involving private or patta land require a similar payment structure, with Rs 30,000 ($344) going to the landowner and Rs 1,000 (~$11) to NREDCAP.

For biofuel projects, the lease amount is Rs 15,000 (~$172) per acre per year, while green hydrogen hubs at ports must pay Rs 100,000 (~$1,146) per acre annually. Developers are liable for lease payments from the date of possession, lease agreement signing, or land registration—whichever occurs first.

Grid Connectivity and Power Evacuation All clean energy projects must comply with Central Electricity Authority (CEA) and Andhra Pradesh Electricity Regulatory Commission (APERC) regulations. The State Transmission Utility (STU) is the nodal agency responsible for grid connectivity, publishing quarterly updates on available substations for power evacuation.

To secure grid connectivity, developers must provide a bank guarantee of Rs 500,000 (~$5,733) per MW for the first year, increasing to Rs 1 million (~$11,460) per MW thereafter until commissioning. Additionally, quarterly progress reports must be submitted to maintain connectivity status.

Open Access and Energy Banking The policy introduces three types of Green Energy Open Access (GEOA):

Long-term (5+ years) – Rs 150,000 (~$1,720) processing fee Medium-term (1–5 years) – RS 100,000 (~$1,146) processing fee Short-term (up to 1 year) – Rs 50,000 (~$573) processing fee Banked energy must be consumed within the same billing cycle, with peak-hour energy withdrawals regulated under APERC’s GEOA Regulations 2024. The maximum banking capacity is capped at 5% of peak grid demand (700 MW for FY 2025), with possible future increases.

Migration of Existing Projects Developers with projects approved under previous renewable energy policies can migrate to the new AP ICE Policy 2024 within six months of notification. Applications will be reviewed by the State Nodal Agency within 14 days.

Industry and Market Outlook Andhra Pradesh’s clean energy policy underscores the state’s ambition to become a leading hub for renewable energy investments in India. With its strategic location, abundant land, and strong infrastructure, the state is attracting domestic and international players in solar, wind, biofuels, and green hydrogen.

India’s renewable energy sector is witnessing unprecedented growth, driven by ambitious national targets of 500 GW of non-fossil fuel capacity by 2030. The Andhra Pradesh policy aligns with this goal, offering investor-friendly reforms, streamlined approvals, and infrastructure support. This initiative is expected to drive job creation, technological innovation, and sustainable development while reinforcing India’s leadership in the global clean energy transition.

The Andhra Pradesh Energy Department has issued detailed operational guidelines under the Integrated Clean Energy Policy 2024, covering resource allocation, land allotment, grid connectivity, open access, banking facilities, project migration, fees, and incentives. These guidelines aim to streamline approvals, accelerate project implementation, and enhance the state's renewable energy landscape. Resource Allocation and Project Approvals The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) has developed a unified digital portal for granting approvals and allocating resources for clean energy projects. Developers must submit applications online along with the required documents and fees. Each submission is time-stamped and processed in order of receipt. Projects up to 40 MW capacity will be approved by the State Nodal Agency (SNA) within 14 days, while larger projects will be reviewed by NREDCAP before being forwarded to the State Investment Promotion Committee (SIPC), the State Investment Promotion Board (SIPB), and the Andhra Pradesh government for final approval. If two developers apply for the same resource, priority will be given based on the highest rupee-per-acre value addition. Land Allotment and Lease Agreements For government or revenue land, clean energy developers (excluding biofuels and green hydrogen hubs) must pay Rs 31,000 ($355) per acre annually, with a 5% escalation every two years. Lease agreements involving private or patta land require a similar payment structure, with Rs 30,000 ($344) going to the landowner and Rs 1,000 (~$11) to NREDCAP. For biofuel projects, the lease amount is Rs 15,000 (~$172) per acre per year, while green hydrogen hubs at ports must pay Rs 100,000 (~$1,146) per acre annually. Developers are liable for lease payments from the date of possession, lease agreement signing, or land registration—whichever occurs first. Grid Connectivity and Power Evacuation All clean energy projects must comply with Central Electricity Authority (CEA) and Andhra Pradesh Electricity Regulatory Commission (APERC) regulations. The State Transmission Utility (STU) is the nodal agency responsible for grid connectivity, publishing quarterly updates on available substations for power evacuation. To secure grid connectivity, developers must provide a bank guarantee of Rs 500,000 (~$5,733) per MW for the first year, increasing to Rs 1 million (~$11,460) per MW thereafter until commissioning. Additionally, quarterly progress reports must be submitted to maintain connectivity status. Open Access and Energy Banking The policy introduces three types of Green Energy Open Access (GEOA): Long-term (5+ years) – Rs 150,000 (~$1,720) processing fee Medium-term (1–5 years) – RS 100,000 (~$1,146) processing fee Short-term (up to 1 year) – Rs 50,000 (~$573) processing fee Banked energy must be consumed within the same billing cycle, with peak-hour energy withdrawals regulated under APERC’s GEOA Regulations 2024. The maximum banking capacity is capped at 5% of peak grid demand (700 MW for FY 2025), with possible future increases. Migration of Existing Projects Developers with projects approved under previous renewable energy policies can migrate to the new AP ICE Policy 2024 within six months of notification. Applications will be reviewed by the State Nodal Agency within 14 days. Industry and Market Outlook Andhra Pradesh’s clean energy policy underscores the state’s ambition to become a leading hub for renewable energy investments in India. With its strategic location, abundant land, and strong infrastructure, the state is attracting domestic and international players in solar, wind, biofuels, and green hydrogen. India’s renewable energy sector is witnessing unprecedented growth, driven by ambitious national targets of 500 GW of non-fossil fuel capacity by 2030. The Andhra Pradesh policy aligns with this goal, offering investor-friendly reforms, streamlined approvals, and infrastructure support. This initiative is expected to drive job creation, technological innovation, and sustainable development while reinforcing India’s leadership in the global clean energy transition.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement