AP Govt Seeking Private Investments for Large Scale RE Projects

The Andhra Pradesh government has formulated a comprehensive policy to promote private investments in the renewable energy (RE) sector

Andhra Pradesh

The Andhra Pradesh government has formulated a comprehensive policy to promote private investments in the renewable energy (RE) sector, as the state is looking to exploit its immense potential to produce solar and wind power.

As reported by ET, the Andhra Pradesh Renewable Energy Export Policy, 2020, has been announced to attract private investments for establishing solar/wind/wind-solar hybrid projects on a massive scale. Under the policy, the renewable energy produced can be exported to other states without any obligation to the state Discoms to procure power as the Discoms have already exceeded the Renewable Power Purchase Obligation (RPO) as notified by the Ministry of Power (MoP), government of India and also AP State Electricity Regulatory Commission (APERC).

The projects will also be helpful in generating additional revenue from lease rentals and green energy development charges, taxes, local employment in villages and improve people’s standard of living, the policy says.

New & Renewable Energy Development Corporation of AP Limited (NREDCAP) is the nodal agency under the RE export policy to promote the projects. The allocation of renewable energy resource potential in any area to developers will be done on a “first come first serve” basis by the nodal agency through its official website. Priority will be given for project developers intending to set up the energy export projects along with manufacturing facilities in the state.

The state government is also offering incentives like facilitation in aggregation and allocation of Revenue and private lands, land use conversion from agriculture use to non-agriculture use and exemption from obtaining any NOC/consent for establishment under pollution control laws from AP Pollution Control Board.

Under the policy, the lands will be allotted to the project developers by the land aggregating agency on a lease basis for a period of 30 years. The lease rentals are fixed at Rs31,000 per acre with a 5 percent escalation every 2 years. The government will get lease rentals on revenue lands at Rs 31,000 per acre (escalated by 5 percent every 2 years). In respect of private and assigned lands, the landowner or assignee will get lease rentals at Rs 25,000 per acre (escalated by 5 percent every 2 years).

This arrangement under the new policy will assure the landowners to get fixed income for the lands which are not used for cultivation most of the time as the potential zones are in drought-prone areas.

Under the RE export power policy, the project developers would also pay a one-time local area development charges at Rs 50,000 per acre, which will be utilised to strengthen local area infrastructure. Further, the state government will get additional revenue by way of Green Energy Development Charges at Rs 1 lakh per MW for the total duration of the project from the project developers.

NREDCAP has proposed to promote ultra mega renewable energy power parks (UMREPPs) in the identified potential zones under the scheme of Ministry of New and Renewable Energy (MNRE), Govt.of India.

Initially, 3-5 GW capacity UMREPPs will be promoted in Anantapur, Kurnool and YSR Kadapa districts. Under the scheme, MNRE is extending central financial assistance (CFA) of Rs 20 lakh per MW or 30 percent of the cost of development of UMREPPs for development of internal power evacuation infrastructure.

NTPC Limited and Solar Energy Corporation of India (SECI) have already expressed their interest to associate with the state government to promote UMREPPs, according to S. Ramanareddy, vice chairman and managing director, NREDCAP.

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