Andhra Pradesh bags nearly Rs 4 trillion green investments in 8 months

Andhra Pradesh has emerged as a leading destination for renewable energy (RE) investments, attracting around Rs 4 trillion from national and international players in eight months, mainly due to its Integrated Clean Energy Policy aimed at establishing the state as a green energy hub. 

Launched in October 2024, the policy has fast-tracked clearances and lined up fresh sops. After returning to power in June 2024, Chief Minister Nara Chandrababu Naidu, who earned the moniker ‘CEO CM’ previously, is building on his legacy by transforming Andhra Pradesh into an RE hot spot, outpacing competitors like Rajasthan, Gujarat, Tamil Nadu, and Karnataka. 

Major investors include Tata Power (Rs 49,000 crore), multiple projects by NTPC Green (Rs 2.08 trillion), Vedanta's Serentica (Rs 50,000 crore), SAEL Industries (Rs 6,000 crore), and Brookfield (Rs 50,000 crore), among others. Additionally, ReNew Power is in the process of making a “significantly larger” investment in the state. 

“Andhra Pradesh (AP) is a unique state with good solar, wind, and pumped storage hydro resources, making it an attractive destination for round-the-clock renewable energy. The state government has come out with very progressive policies and streamlined processes to enable the development of large-scale clean energy capacities,” said Sumant Sinha, chairman and chief executive officer, ReNew. 

“Based on the favourable developments, ReNew is committed to making significantly larger investments in AP and contributing to the state’s and the nation’s decarbonisation efforts,” Sinha added. 

ReNew is currently developing over 1,500 megawatts (MW) of firm and dispatchable renewable energy (FDRE), consisting of wind, solar, and battery energy storage solutions (BESS) at a single location in the entire country, which may see investments to the tune of Rs 10,000 crore and create over 6,000 direct and indirect jobs. The project is likely to be completed in 24 months. It is planning to expand capacity too. 

In October, the policy mainly targeted the large-scale promotion of renewable energy (RE), pumped storage power (PSP), green hydrogen, and its derivatives through the optimum utilisation of available resources. 

“We are truly excited and enthused by the new renewable energy policy framework. We have already commenced work on 600 MW solar projects and further aim to develop more RE capacity, as well as an integrated manufacturing facility and waste-to-energy projects using our path-breaking technology,” said Sukhbir Awla, managing director of SAEL Industries (a renewable platform funded by Norfund and IFC) developing a 1,200 MW solar project at an investment of Rs 6,000 crore. 

Why Andhra Pradesh? 

According to a Central Electricity Authority (CEA) roadmap, of the targeted 500 gigawatts (Gw) generation capacity from non-fossil fuel resources by 2030, 86 Gw of RE potential is in South India. Out of this 86 Gw, around 51 Gw has been identified in Andhra Pradesh (Anantapur 20 Gw, Kurnool 23 Gw, and Kadapa 8 Gw). 

“The new policy has strict timelines for implementation, like a 24-month project execution deadline, high net worth criteria, and a focus on energy export. It removed intermediaries, who used to take site allotments. The state has also introduced a transparent procedure called ‘Operational Guidelines’, which clearly lays down timelines for receipt of all necessary approvals,” said a government source. 

Andhra Pradesh’s renewable energy potential capacities are located in Anantapur, Kurnool, and Kadapa, which are high-load centers, aiding easy evacuation versus some rival states, he said. 

 

“The proximity of these locations to Chennai, Bengaluru, and Hyderabad also makes it more attractive,” he added.