The AP government has decided to set up Renewable Economic Zones for the establishment of solar and wind power as well as other renewable power units. Along with these, action has been taken to set up manufacturing zones.
As part of the Integrated Clean Energy Policy, the government has made it clear that the energy department will provide incentives for investments in various projects including green hydrogen. The government has decided to set up Renewable Economic Zones in the state for renewable power plants.
Renewable Economic Zones will be set up for hybrid and battery storage power generation plants including solar and wind power. To this end, the government has stated that REZs are being set up in the Green Energy Policy.
It has been clarified that renewable energy manufacturing zones will also be set up in addition to these. Moreover, it stated that viability gap funding will be provided to power plants that produce electricity using modern technology.
It has been revealed that there are opportunities for power generation in geo-thermal, tidal power, ocean-based power generation technology, storage, etc. It has been decided to set up REZs through Renewable Energy Resources Corporation and AP Solar Power Corporation.
In the new policy, the state government has stated that it will focus on green hydrogen production as a future fuel. It intends to undertake projects in collaboration with the National Green Hydrogen Mission. Activities will be taken to produce green hydrogen at a low cost by setting up electrolyzer units and increasing their capacity.
The state government has decided to provide a 25 percent investment subsidy for the establishment of electrolyzers, which are key in the establishment of green hydrogen projects. An incentive of Rs. 1 crore per megawatt will be paid to the developer who sets up a hydrogen production plant over a period of five years.
It has been revealed that incentives will be given to the first 10 green hydrogen plants to be set up with a production capacity of 1.5 million tons. The policy states that green hydrogen hubs to be set up at ports will be leased at the rate of Rs 1 lakh per acre.
It has been revealed that the state will also bear 25 percent of the financial assistance provided by the center to green hydrogen hubs. Assistance will also be provided to power plants through waste as part of the Clean Andhra Pradesh program.
Moreover, incentives will be provided to the establishment of biofuel production plants. The government has stated in the new policy that AP DISCOMs will purchase electricity from all these.