Not too long back, the Andhra Pradesh state government under Chief Minister YS Jagan Reddy (in the picture) wanted to revise power purchase agreements for renewable energy projects finalized under previous political establishment. Now, it is attracting private investment for 120 GW renewable energy capacity through a new export policy. (Photo Credit: CMO Andhra Pradesh/Twitter)
- Andhra Pradesh’s new renewable energy export policy aims to facilitate setting up of 120 GW of solar, wind, wind-solar hybrid and hybrid projects with storage
- It will ensure availability of 500,000 acres of land for project development in the state
- Preference will be given to developers that bring in opportunities for PV manufacturing facilities as well
- Renewable energy generated by the projects under the policy will be exported outside the state
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The Andhra Pradesh (AP) state government in India has announced its own renewable energy export policy 2020 aimed at facilitating 120 GW of renewable energy projects. The power generated will be exported outside the state. The policy will be applicable to solar, wind and wind-solar hybrid projects without any obligation of procurement of power by state discoms.
Titled Andhra Pradesh Renewable Energy Export Policy, 2020 the policy aims at attracting private investments, and generating additional revenue to the state government that will facilitate a 30-year lease for 5,00,000 acres of potential land to renewable energy export project developers. Land availability will be ensured by a state agency, the New and Renewable Energy Development Corporation of Andhra Pradesh Ltd. (NREDCAP).
Land will be leased to developers by the state agency for INR 31,000 ($415.30) per acre annually to be increased by 5% every 2 years, while in case of rent to be paid to private landowners, the charges will be INR 25,000 ($335) per acre per year.
To remain in operation for 5 years, the policy will encourage setting up of renewable energy equipment manufacturing facilities and priority will be accorded to those project developers that intend to set up export projects along with production facilities in Andhra Pradesh. The state government will allocate renewable energy resource potential in any area to developers on a first come, first serve basis by NREDCAP, the nodal agency for the implementation of the policy.
If the supply of power from projects set up under this policy relate to open access then all charges levied by the state electricity regulatory commission shall also be paid, but no energy banking will be allowed.
In lieu of developers setting up their projects in the state, Andhra Pradesh’s administration will exempt such projects from obtaining a no-objection certificate (NOC) from Andhra Pradesh Pollution Control Board. For manufacturing facilities, companies will be exempted from paying electricity duty for 10 years, among other incentives offered.
NREDCAP has simultaneously issued a call inviting applications for solar, wind, wind-solar hybrid and hybrid power projects with storage under the policy on its website.
“Andhra Pradesh has significant potential each for Solar, Wind and Wind -Solar Hybrid generation. The state has ideal conditions for setting up Renewable Energy projects for export of energy to other states,” explains the state government while adding that it has already achieved its renewable power purchase obligation (RPO) targets.
The announcement follows on the state government’s policy to implement 10 GW of solar power to facilitate farming activities with clean power, which will be implemented through Andhra Pradesh Green Energy Corporation Ltd. (APGECL) (see APGECL Nodal Agency For 10 GW Solar In Andhra Pradesh).
As per the state’s solar policy 2018 released in January 2019, it aims to add 5 GW of solar power capacity in 5 years, while under its wind-solar hybrid policy 2018 by 2021-22 the state wants to achieve 18 GW capacity (see New Solar & Hybrid Power Policy In Andhra Pradesh).
At the end of June 2020, Andhra Pradesh had a cumulative operational solar power capacity of more than 3.53 GW out of combined renewable energy capacity of over 8.2 GW.