Andhra Pradesh Unveils Ambitious Clean Energy Policy to Transform into Global Hub
Key Ideas
- Andhra Pradesh's Integrated Clean Energy Policy aims to add 160 GW of renewable energy, attracting investments of around ₹10 trillion over five years.
- The policy offers incentives like land lease, exemption of land conversion fees, waived wheeling charges, and electricity duty reimbursement for clean energy projects.
- Special provisions for clean energy manufacturing include capital subsidies, SGST reimbursement, exemptions on open access charges, and off-take guarantees for solar/wind manufacturers.
- Green Hydrogen projects receive a 25% capital subsidy on plant costs, with specific caps, and incentives for integrated facilities producing green ammonia and methanol.
The state of Andhra Pradesh in India has introduced the Andhra Pradesh Integrated Clean Energy (ICE) Policy 2024 with the goal of becoming a prominent global clean energy hub. The policy targets adding more than 160 GW of renewable energy capacity and attracting investments worth approximately ₹10 trillion (~$118.95 billion) over a five-year period. Projects that achieve financial closure during this time will receive extensions for implementation based on technology and project type.
The ICE Policy provides various incentives to encourage investment and development in clean energy projects across the state. These incentives include land lease options, exemption of land conversion fees, waived wheeling charges, and reimbursement of electricity duty for clean energy initiatives. Additionally, the policy outlines regulations for energy banking, grid management, and clean energy manufacturing zones to further incentivize the sector.
Special provisions are made for solar and wind projects, offering capital subsidies, SGST reimbursement, exemptions on open access charges, and off-take guarantees for manufacturers. Green Hydrogen projects utilizing electrolyzers are eligible for a 25% capital subsidy on plant and equipment costs, with specific caps and incentives for integrated facilities producing green ammonia and methanol.
The policy also addresses the development of infrastructure required for Green Hydrogen hubs, with the State Government providing up to 25% of the infrastructure costs. Overall, the sentiment towards the Andhra Pradesh ICE Policy is positive, as it aims to revolutionize the clean energy landscape and boost sustainable development in the region.
Topics
India
Green Hydrogen
Renewable Energy
Infrastructure Development
Clean Energy Projects
Policy Incentives
Investment Attraction
Grid Management
Manufacturing Zones
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