The Andhra Pradesh government has announced plans to set up Renewable Energy Zones (REZs) and a dedicated university for green energy and circular economy as part of its Integrated Clean Energy Policy (ICEP). These initiatives aim to attract large-scale investments and foster clean energy production within the state.
The state will provide Viability Gap Funding (VGF) to support ultra-modern green energy power plants and has set a 20% capital subsidy (up to Rs 50 million per project) for demonstration projects with a maximum capacity of 5 MW. This subsidy will be disbursed in phases, with 10% before operations and another 10% within two years of commencement.
To encourage renewable energy manufacturing, the government will establish Renewable Energy Manufacturing Zones (REMZ) through AP State Power Corporation Limited (APSPCL), which will act as the nodal agency.
APSPCL will provide necessary infrastructure, including power, roads, and water, and manage last-mile connectivity to support manufacturing hubs for solar, wind, battery, and electrolyzer projects. Developers within REMZs will be charged for infrastructure, utilities, and maintenance.
The government will also promote NIRE (Non-Conventional and Innovative Renewable Energy) technologies, including offshore, geothermal, tidal energy, and carbon capture, to diversify clean energy sources.
In addition, a new university for Green Energy and Circular Economy will be established via a Public-Private Partnership (PPP). The university will serve as a training hub, offering certifications and industry-specific programs to create a skilled workforce for clean energy and renewable manufacturing projects. The curriculum will be developed in collaboration with industry and academia, promoting technology transfer and intellectual capital within the clean energy sector.