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鈥攚hichever 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) 鈥� Rs 150,000 (~$1,720) processing fee
Medium-term (1鈥�5 years) 鈥� RS 100,000 (~$1,146) processing fee
Short-term (up to 1 year) 鈥� Rs 50,000 (~$573) processing fee
Banked energy must be consumed within the same billing cycle, with peak-hour energy withdrawals regulated under APERC鈥檚 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鈥檚 clean energy policy underscores the state鈥檚 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鈥檚 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鈥檚 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鈥攚hichever 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) 鈥� Rs 150,000 (~$1,720) processing fee
Medium-term (1鈥�5 years) 鈥� RS 100,000 (~$1,146) processing fee
Short-term (up to 1 year) 鈥� Rs 50,000 (~$573) processing fee
Banked energy must be consumed within the same billing cycle, with peak-hour energy withdrawals regulated under APERC鈥檚 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鈥檚 clean energy policy underscores the state鈥檚 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鈥檚 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鈥檚 leadership in the global clean energy transition.
