The Andhra Pradesh Integrated Clean Energy (ICE) Policy 2024 is here to rev up the state’s renewable energy landscape, offering a powerful mix of innovation, sustainability, and financial incentives. With a clear focus on clean energy solutions and carbon emission reduction, this forward-thinking policy aims to create a thriving ecosystem for investors and businesses. By introducing tax breaks, government funding, and robust support for renewable energy storage projects, Andhra Pradesh is setting the stage for a greener, more energy-efficient future.
Andhra Pradesh (AP) is located in the southern coastal region of India, having a strategic location for harnessing the wind and the sun shines bright most days of the year. Therefore, various industries and businesses would undoubtedly look forward to producing green energy in the state. The Andhra Pradesh government made the ICE Policy announcement this year, in part, because of the state’s potential.
The chances for Andhra Pradesh to become the hub of green energy is evident in the potential its cities exhibit. Although with its share of some challenges, Andhra Pradesh has mostly favoured a renewable push. Under the leadership of Chief Minister Chandrababu Naidu, undivided Andhra Pradesh was among the frontrunners in clean energy development.
The table below displays the renewable energy capacities of the cities in Andhra Pradesh. It shows the massive potential that this state has for industries and businesses to make an AP renewable energy investment.
| Cities in Andhra Pradesh | Total Installed RE Capacity (MW) | Solar (MW) | Biomass (MW) | Wind (MW) | Waste to Energy (MW) | Small Hydro (MW) |
| Vizianagaram | 553 | 515 | 30 | – | 6 | 2 |
| East Godavari | 207 | 105 | 69 | – | 27 | 7 |
| West Godavari | 109 | 7 | 22 | – | – | – |
| Guntur | 64 | 27 | – | – | – | 36 |
| Kurnool | 1,132 | 563 | 12 | 531 | – | 26 |
| Ananthapuramu | 5,182 | 1,840 | – | 3,223 | – | – |
| Srikakulam | 53 | 31 | 22 | – | – | – |
| Visakhapatnam | 30 | 4 | 26 | – | – | – |
| Krishna | 66 | 4 | 54 | – | 6 | 3 |
| Prakasam | 58 | 22 | 32 | – | – | 4 |
| Nellore | 106 | 41 | 37 | 3 | – | 26 |
| YSR Kadapa | 1,061 | 746 | 6 | 309 | – | – |
| Chittor | 257 | 214 | 29 | 7 | 8 | – |
Renewable Energy Capacities of the cities in Andhra Pradesh
AP offers significant potential for solar and wind power compared to other states. The following reasons justify why:
The untapped potential of green energy in Andhra Pradesh is evident with the fact that each square metre of land receives more than 5 kilowatt-hours of solar energy per day. This means that the state has a lot of potential for leveraging solar, wind, hydropower, etc. but has not yet fully used it. As quoted by Andhra Pradesh Economic Development Board, AP currently has:
| Total Installed Capacity | Renewable Installed Capacity | Solar Power Potential |
| 25.7 GW | 8.9 GW | 38.4 GW |
| Per Capita Electricity Consumption | Wind Power Potential (100-metre height) | Pumped Storage Hydro Power Potential |
| 1,284 kWh | 44.3 GW | 34 GW |
The capacity of leveraging renewable energy in Andhra Pradesh
With the amount of solar power that the state has the potential to generate, investors can look forward to the Andhra Pradesh Renewable Energy Policy. So, let’s dive into what the policy entails, its key objectives, and its long-term vision.
As of 17 October 2024, the state government issued the Andhra Pradesh Renewable Energy policy to initiate its transformation into a clean energy hub. In other words, the Andhra Pradesh Chief Minister N Chandrababu Naidu unveiled the Integrated Clean Energy (ICE) Policy to incentivise investments for businesses pursuing the renewable energy sector. These investments would fall across projects such as solar, wind, geothermal, hydropower, and other related renewable energy projects to achieve net zero emissions by 2047. The policy will be operational for five years.
In addition to the tax breaks included involve waiving of stamp duty for mini-hydro, pump storage projects, battery storage, biofuels and manufacturing units, there are also capital subsidies for businesses investing in battery storage, green hydrogen, biofuels and renewable energy manufacturing projects.
The ICE policy of renewable energy in Andhra Pradesh proposes an investment of Rs 10 Lakh Crores. This would further enable direct and indirect employment for 7,50,000 workers Additionally, the state wants to tap storage capabilities through pumped storage projects through six operational ports (4 are under development), a long coastline, and skilled manpower.
This project looks towards achieving green energy in Andhra Pradesh by targeting:
Also, the state aims to set up:
The Andhra Pradesh Renewable Energy Policy puts a range of incentives on the table for investors.
Therefore, as investors will enjoy the many perks offered through this policy, one can also take a look at the energy mix and capacity targets established.
As per the AP ICE policy, the capacity installations are set for Andhra Pradesh DISCOM’s procurement, green hydrogen production and its derivatives, export of power to other states, and reaching commercial and industrial consumptions under the open access route.
The plan for the targets includes:
| Renewable Sources | RE Export | Green Hydrogen Power | AP DISCOMs Procurement | Open Access Route |
| Solar (GWp) | 10 | 28.8 | 36.7 | 2 |
| Wind (GW) | 10 | 8.6 | 15 | 1.8 |
| Bess (GWh) | – | 5.6 | 16 | 3.6 |
| PSP for RTC (GW) | 5 | 13.9 | 3 | – |
Andhra Pradesh is set for a bright sustainable future, but the right skills and manpower are required to achieve this massive milestone. Again, the state already has a large population (3,79,08,471 as of April 1, 2024) whose talents can be tapped accordingly. Steps are being taken to achieve this feat through skill development and the setting up of knowledge centers.
The policy is targeting 25 to 30 GW of cleantech manufacturing to help create jobs for the local population. However, to ensure that the talents are obtained for such large-scale operations, it is necessary to build relevant skills. This is where the UGC or University of Green Energy and Circular Economy will be established to collaborate with the government of India. The collaboration will take place with industries under the PPP or Public-Private Partnership Mode.
CEKSDC or Clean Energy Knowledge & Skill Development Center will be set up to serve as a knowledge and training hub centre. This will also further enable partnerships with various academia, industries, and think tanks.
As renewable energy capacity takes a faithful leap in Andhra Pradesh, it proves to be a positive step in the direction of India’s 2030 renewable energy goals. Furthermore, the Andhra Pradesh Renewable Energy Policy will run for five years, and it aims to contribute to the promise of net zero carbon emission by 2047. Promoting green energy in the state will attract investment for the coming five years and create value for decades to come.
The Andhra Pradesh Integrated Clean Energy Policy 2024 marks a transformative step toward a sustainable energy future. The policy is in line with Andhra Pradesh’s ambitious target of net zero carbon emission by 2047 and with strengthened initiatives under this policy, Andhra Pradesh is set to attract significant investment over the next five years, exponentially expanding its renewable energy capacity and securing its position as a key leader in the energy transition.
The purpose of Andhra Pradesh’s ICE Policy is to evolve the state into a global hub for renewable energy. Its overall aim is to contribute to India’s goal of net zero carbon emissions by the year 2047.
As per the AP ICE Policy, new and innovative skills will be required to achieve clean tech manufacturing on a scale of 25 to 30 GW. For this, it is necessary to develop the required skills in the workforce. Therefore, the UGC will collaborate with PPP and the Government of India to develop these relevant skills. In turn, there will be a rise in job placements in this field. Furthermore, the Clean Energy Knowledge & Skill Development Center (CEKSDC) will be developed to form a knowledge and training hub and partner with academia and think tanks.
The ICE Policy will run for five years. Its long-term goals would mainly contribute to making the state a central hub for green energy. It also envisions contributing to making India a net zero carbon emissions nation by 2047.
Yes, this policy aims at attracting investors and businesses from outside.
The main types of renewable energy supported in this policy include:
