Companies line up RE projects worth ₹43,358 crore in Andhra Pradesh

Andhra Pradesh cleared Rs 43,358 crore of renewable projects totalling 2,600 MW under its ICE Policy, with major investments from Navayuga, Serentica, Hexa, and Brightfuture

Andhra Pradesh has cleared renewable energy projects worth ₹43,358 crore by 11 companies over the past week. These will have a total capacity of over 2,600 megawatts (Mw). 

The nod, given by State Investment Promotion Committee (SIPC), includes industry majors I Squared Capital-backed Hexa Energy, KKR-backed Serentica Renewables, CESC arm Brightfuture Power, and Hero Group’s Clean Renewable Energy. 

The projects are spread across solar, wind, compressed biogas, and pump storage units. 

“In total, permits and land are being allotted for 2,600 Mw green energy capacity and 1,200 MWh storage capacity. The SIPC has already cleared these projects last Friday, and the final nod is expected from the state Cabinet this week,” said a government source aware of the development. 

Since N Chandrababu Naidu took charge as chief minister in June 2024, the state has attracted fresh RE projects worth ₹2.2 trillion. 

A major chunk of these investments is coming from Hyderabad-based Navayuga Engineering. It will be expanding its Gujjili Pumped Storage Power (PSP) project in Alluri Sitharama Raju district from 1,500 Mw to 2,400 Mw at an investment of ₹15,455 crore. Another ₹15,050 crore is by Chinta Green Energy for PSP expansion from 350 Mw to 2,400 Mw in YSR Kadapa district.

 

Among the industry majors, Serentica Renewables will be installing 550 Mw of wind power projects at two locations — Ananthapur and Kurnool — at a total investment of ₹2,400 crore.

 

Brightfuture Power has also zeroed in on an 880-acre land in Ananthapur for a 350 Mw wind power unit at an investment of ₹3,286 crore. Hexa Energy got clearance for a 100 Mw hybrid solar and wind project with a ₹1,200 crore investment. In addition, central government-owned Solar Energy Corporation of India (SECI) has applied to develop 1,200 MWh of renewable battery energy storage capacity in Nandyal.

 

Refex Solar will also be investing around ₹480 crore for a 100 Mw solar project in Sri Sathya Sai district. Clean Renewable Energy will come up with a ₹1,000 crore solar project at Nandyal.

 

The proposed capacities would be set up under Andhra Pradesh’s Integrated Clean Energy (ICE) Policy. This landmark clean energy framework aims for the state to develop over 160 gigawatt (Gw) of renewable energy with an investment potential of ₹10 trillion.

 

The new project clearance comes close to the land de-allotment steps taken by Naidu against renewable energy developers who have not commenced work despite large land allocations. This reportedly includes a 3,000 Mw project by Indosol, 3,500 Mw by Ecoren, and 12,000 Mw by Axis Energy Ventures.

 

The source said, “After de-allotment and notices to developers squatting on capacity such as Axis, Indosol, and Ecoren, the government of Andhra Pradesh has laid out a red carpet for fund-backed developers who are interested in developing projects in the state.”

 

A source in the government said that more are expected, as applications have been received from leading investor-backed platforms.

 

“The focus right now is to award projects to companies that have the ability and ready access to capital, power purchase agreements (PPAs), and transmission connectivity to quickly deliver on projects,” he added.

 

In renewables, major committed investments in the last one year are from Tata Power (₹49,000 crore), multiple projects by NTPC Green (₹2.08 trillion), Serentica (₹50,000 crore), SAEL Industries (₹6,000 crore), and Brookfield (₹50,000 crore), among others.

 

Green energy major ReNew is also set to come up with a ₹22,000-crore renewable project at Anantapur. It is going to be the largest RE complex in India.