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Andhra Pradesh Issues Operational Guidelines for Clean Energy Projects

The Andhra Pradesh Energy Department has issued operational guidelines under the Integrated Clean Energy Policy (ICEP) 2024, covering resource allocation, land allotment, grid connectivity, open access, banking facility, project migration, fees, and incentives.

The Energy Development Corporation of Andhra Pradesh (NREDCAP) will launch a unified portal for project approvals, resource allocation, and implementation of clean energy projects. Developers must apply online with necessary documents and fees, and applications will be time-stamped. Approvals for projects up to 40 MW will be granted within 14 days, while larger projects will be reviewed by the State Investment Promotion Committee (SIPC) and the Andhra Pradesh government for final approval. Resource allocation follows a priority system based on high-value additions, with a first-come-first-serve approach for contested resources. If the portal is down for over three days, developers can submit physical applications.

Land Allotment

Clean energy developers leasing government or revenue land must pay Rs31,000 going to the landowner and Rs1,000/acre/year, while green hydrogen hubs at ports have a higher rate of Rs100,000/acre/year. Lease charges apply from the date of possession or registration.

Grid Connectivity and Power Evacuation

All projects must comply with national and state grid regulations. The State Transmission Utility (STU) will handle grid connectivity approvals, updating substations' availability quarterly. Developers need to submit a Rs500,000/MW afterward until commissioning. Connectivity approvals may be canceled if land possession is delayed beyond three months.

Open Access

Three types of Green Energy Open Access (GEOA) are available: long-term (over five years), medium-term (one to five years), and short-term (up to one year). Processing fees vary from Rs50,000. Developers must meet metering and technical requirements under national regulations.

Banking Facility

The banking facility allows developers to store unutilized energy within a monthly cycle, ensuring efficient energy usage. Banking is capped at 5% of peak grid demand (700 MW for FY 2025), with potential increases based on system studies. Banked peak-hour energy can be drawn at any time, while off-peak energy is restricted to off-peak hours.

Migration of Projects

Projects from previous policies can migrate to the AP ICE Policy 2024 within six months by applying to the state nodal agency, which will process applications within 14 days.