The government has formulated the ‘Integrated Energy Policy’ (IEP) with a target of Rs.10 lakh crore investments in the state in the next five years and employment of 7.75 lakh people. Solar, wind, battery storage, electrolyzers, bio fuel, PSP, hybrid projects, solar parks and setting up manufacturing units are adopting a single policy.
for compliance investments for five years Special incentives for green hydrogen, green ammonia projects Establishment of renewable manufacturing zones Decision on power banking procedures today – Amaravati
The government has formulated the ‘Integrated Energy Policy’ (IEP) with a target of Rs.10 lakh crore investments in the state in the next five years and employment of 7.75 lakh people. Solar, wind, battery storage, electrolyzers, bio fuel, PSP, hybrid projects, solar parks and setting up manufacturing units are adopting a single policy. Investments through this policy will be given industrial status. Mainly by promoting green energy projects, the government has formulated a policy aimed at international investment. While continuing the existing subsidies to encourage newly developing green hydrogen, green ammonia, electrolyzer manufacturing, bio fuel, battery storage and PSP projects, the government will give new investment subsidy. The government has prepared a new policy aimed at reducing the cost of electricity procurement by significantly increasing the share of renewable electricity in the state’s demand. Setting up of clean energy plants has been set as a target. The main objectives of the policy are to create investment opportunities to facilitate the circular economy and thereby increase employment opportunities. The new policy will be effective for five years. The new policy has also provided flexibility to apply to renewable power projects which have previously signed agreements for setting up renewable power projects but which have not been grounded/commissioned. The policy guidelines were received by ‘Eenadu’. According to them..
An opportunity for power banking
The government provides banking facility to the companies that have set up power plants in the state. Provisions have been made to reuse that electricity.
Off-peak (solar time) demand: 9 am to 5 pm. That electricity can be reused anytime during the off-peak period.
Peak Demand: Considered 5-9 AM and 7-11 PM. That electricity can be used whenever needed.
General Banking: 11 PM to 5 AM, 5 PM to 7 PM. Organizations have the flexibility to use that electricity during normal and off-peak periods.
The government will allow electricity banking up to 5% (700 MW) of peak grid demand in FY 2024-25. After that it increases at the rate of 5% annually.
Promotion of renewable manufacturing zones
The government has decided to set up new Renewable Manufacturing Zones (REMZ) in the state. AP Solar Power Corporation acts as the nodal agency. Government will provide infrastructure in REMZ to those setting up projects in the private sector.
Priority is given to innovative RE technologies like Geo Thermal, Tidal, Ocean Energies, Bio Fuel, Biogas, Ethanol Blend, Storage, Carbon Capture. 20% under Viability Gap Fund/Capital Subsidy for pilot projects.
Lands under lease scheme for projects.. Incentives
- Rs. 31 thousand per acre per acre for land acquired for setting up solar power projects. Increase at the rate of 5% for two years.
- There is no fee for rooftop solar projects up to 5 kilowatts. Nedcap charges Rs.1000 per 100 kilowatts, Rs.10 thousand per thousand kilowatts, and Rs.25 thousand per megawatt for projects above that.
- 30% payment over five years under Investment Subsidy on Fixed Capital Investment (FCI) for solar modules and components manufacturers. Exemption of open access charges (transmission/distribution/wheeling), cross-subsidy surcharges for ten years. Exemption of Stamp Duty, SGST (5 years). Ten years subsidy at the rate of rupees per unit of electricity. 25% concession on water cess for ten years.
- 30% investment subsidy on FCI for wind power projects payable in five years. Exemption of open access charges, cross subsidy surcharges for ten years. Exemption of stamp duty on land conversion, exemption of SGST for five years. Similar incentives are available for wind turbine manufacturing projects, wind-solar hybrid projects and mini hydel projects.
- 30% investment subsidy on plant and equipment for green hydrogen and derivatives projects (maximum Rs. crore per MW) within five years. Subsidy will be provided only up to 10 plants/1.5 million tonnes per annum production capacity. Other incentives will be provided as usual.
- 30% investment subsidy for green hydrogen and green ammonia projects (maximum Rs.40 lakhs)
- 20% investment subsidy on FCI for desalination projects (de-salination plants) (maximum Rs. crore per MLD)
- The state government will provide 25% of the project cost (maximum Rs.10 crore) over five years in addition to the central subsidy for infrastructure in green hydrogen hubs. Apart from this, registration charges and SGST exemption on land conversion
- The land allocated to PSPs under the lease system will be allotted by the government for 46 years at the rate of Rs.31 thousand per acre. Increases the lease amount by 5% every two years. Exemption from water cess and stamp duty. 30 percent of the electricity generated from the project can be utilized for state purposes. Tariff is decided by APERC.
Global University for Green Energy and Circular Economy: Government to set up Clean Energy Knowledge and Skill Development Center (CEKSDC) with international standards. In view of the opportunities of green energy in the future, the government provides necessary knowledge, technology transfer from time to time, training of professionals in this field and certification courses. Skill training to provide employment to the youth of the state.
- Nedcap acts as the nodal agency for allocation and coordination of investment in renewable projects.
500 charging centers in the state
The government has decided to increase the use of electric vehicles in the state. For this, it is expected to make 500 charging centers available in the next five years. 25% investment subsidy will be given on the amount of their establishment. It is expected to establish 150 in corporations and district centers, 150 along national highways and the rest in private buildings. The Maximum Ceiling Tariff (MCT) decided by APERC will be applicable.
