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

Resource Allocation

The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) will develop a unified portal for granting approvals, allocating resources and implementing clean energy projects and renewable manufacturing plants.

Applications and approvals for clean energy projects and renewable manufacturing plants must be completed online via the unified portal. Developers must include the necessary documents and application fees along with the application.

Applications are automatically time-stamped upon submission, and only complete applications are processed. Developers are notified about the status of their application through the portal. For projects of up to 40 MW capacity, the State Nodal Agency (SNA) approves within 14 days. However, for projects exceeding 40 MW, NREDCAP will review the applications before forwarding them to the State Investment Promotion Committee (SIPC), the State Investment Promotion Board (SIPB), and the Andhra Pradesh government (GoAP) for final approval.

The allocation of resources is prioritized based on high-value additions, i.e., rupees per acre. If two developers apply for the same resources, the allocation follows a first-come-first-serve basis. If any resources remain after initial allocation, they will be distributed pro-rata to other developers.

Developers can submit a physical application if the unified portal is not functional for over three consecutive days. The application will be considered based on the email time-stamp and treated the same as an online submission.

If a developer requests an enhancement in project capacity, the proposal is referred to the SIPC, the SIPB, and the Andhra Pradesh government for approval.

The allocation of resources based on the project type and capacity is as follows:

Land Allotment

Developers of clean energy projects (excluding biofuels and green hydrogen hubs) entering lease agreements for government or revenue land must pay ₹31,000 (~$355) acre per year, with a 5% escalation every two years. This amount is paid entirely to the revenue department.

For private or patta land lease agreements involving NREDCAP, the developer pays ₹31,000 (~$355)/acre, with ₹30,000 (~$344) going to the landowner and ₹1,000 (~$11) to NREDCAP for the first two years. Afterward, the payment proportions remain the same, including the escalations. If there is no NREDCAP involvement, the developer pays the full amount to the landowner, and no payment is made to NREDCAP.

For biofuel projects, the lease amount for government or revenue land is ₹15,000 (~$172)/acre/year, with a 5% escalation every two years, all of which is paid to the revenue department.

The lease amount for government or revenue land for green hydrogen hubs at ports is ₹100,000 (~$1,146)/acre/year, paid to the revenue department.

Lease charges must be paid by the developer starting from the date of possession, lease agreement, or registration, whichever occurs first. If the developer has not taken possession of the entire land, lease charges will be paid only for the land taken into possession.

Grid Connectivity and Power Evacuation

All clean energy projects must comply with the Central Electricity Authority (Technical Standards for Connectivity to the Grid) Regulation, 2007, and the Andhra Pradesh Electricity Regulatory Commission (APERC) Power Evacuation Regulation 3, 2017. The State Transmission Utility (STU) is designated as the nodal agency responsible for processing and granting grid connectivity. The STU provides quarterly updates on available substations for power evacuation, and these details are published on the NREDCAP website.

Developers may approach the SNA for grid connectivity during a project’s construction phase, where 50% of the land required for setting up a project is under applicant possession.

They must submit within 30 days from the date of receipt of this connectivity permit a bank guarantee of ₹500,000 (~$5,733)/MW for the first 12 months and ₹1 million (~$11,460)/MW thereafter until commissioning.

Developers must also submit quarterly progress reports for solar, wind, hybrid, and battery storage projects to process their grid connectivity applications. If the developer does not take possession of the required land within three months of connectivity approval, the STU may cancel connectivity approval.

Open Access

The policy provides three types of Green Energy Open Access (GEOA), including long-term access for more than five years, medium-term access for between one and five years, and short-term access for up to one year. The processing fee for long-term open access is ₹150,000 (~$1,720), while medium-term and short-term access require fees of ₹100,000 (~$1,146) and ₹50,000 (~$573), respectively.

Developers must comply with metering requirements under the Central Electricity Authority (Installation and Operation of Meters) Regulations, 2006. The Andhra Pradesh SLDC is the nodal agency for short-term GEOA, whereas STU manages medium and long-term GEOA. Additional technical requirements, such as data acquisition systems and compliance with metering regulations, should be included.

Banking Facility

Under the AP ICE Policy, the banking facility allows developers to store unutilized energy within a monthly billing cycle. Banked energy must be consumed within the same billing period, ensuring a structured and efficient energy flow. Energy banking charges, drawal limits, and other operational provisions fall under the jurisdiction of APERC’s GEOA Regulations 2024. The maximum allowable banking capacity at the grid level is capped at 5% of peak grid demand (700 MW for financial year 2025), with potential increases based on system studies. Energy banked during peak hours can be drawn during peak, off-peak, and normal hours, while off-peak energy can only be used in off-peak hours.

Migration of Projects from Previous Policies

Projects allotted under previous renewable energy policies can migrate to the AP ICE Policy 2024 within six months of the notification. The migration process requires submission of an application to the state nodal agency, which reviews and processes applications within 14 days.

Subscribe to Mercom’s real-time Regulatory Updates to stay informed about critical updates from the renewable industry.