Andhra Pradesh issues operational guidelines for Integrated Clean Energy Policy, 2024

The Andhra Pradesh Energy Department has issued operational guidelines under the Integrated Clean Energy Policy, 2024, covering resource allocation, land allotment, grid connectivity, open access, banking facilities, and project migration. The New and Renewable Energy Development Corporation of Andhra Pradesh will develop a unified portal for applications, approvals, and implementation of clean energy projects and renewable manufacturing plants. Developers must submit applications online with required documents and fees. Only complete applications will be processed. For projects up to 40 MW, approvals will be granted within 14 days, while larger projects require review by state authorities. 

Land allocation is prioritised based on economic value, with government or revenue land leased at Rs 31,000 per acre annually, escalating by 5 per cent every two years. Biofuel projects will have a lower lease cost of Rs 15,000 per acre per year, while green hydrogen hubs at ports are charged Rs 100,000 per acre annually. Payments must begin from the date of possession or lease agreement, whichever comes first. All clean energy projects must adhere to grid connectivity standards set by the Central Electricity Authority and the Andhra Pradesh Electricity Regulatory Commission. The state transmission utility will oversee grid access, providing quarterly updates on substation availability. 

Developers must secure land possession for at least 50 per cent of their project site before seeking connectivity approval. This must be done alongside a bank guarantee of Rs 500,000 per MW for the first year, increasing to Rs 1 million per MW until commissioning. Additionally, three types of green energy open access are available: long-term (more than five years), medium-term (one to five years), and short-term (up to one year), with respective fees of Rs 150,000, Rs 100,000, and Rs 50,000. Energy banking is permitted within a monthly billing cycle, subject to a grid-level cap of 5 per cent of peak demand (700 MW for the financial year 2025). Furthermore, projects approved under earlier renewable energy policies may migrate to the 2024 policy within six months, following submission to the state nodal agency.