Andhra Pradesh gives go-ahead to 500 CBG plants by Reliance

The Andhra Pradesh government has given a go-ahead to several major green & clean energy projects under its newly created AP Integrated Clean Energy Policy-2024 (ICEP).

Under the scheme of things, the Reliance Industries Limited (RIL) will establish 500 Compressed Bio-Gas (CBG) plants across various districts, with a combined capacity of 11,000 metric tons. The government will provide incentives and lease available revenue lands at ₹15,000 per acre per year, with a 5% biennial escalation.

The Andhra Government has also approved the establishment of a 1.0 MMTPA green hydrogen-based ammonia plant at Kakinada by AM Green Ammonia. According to the order issued by Special Chief Secretary (Energy) K. Vijayanand, incentives will include a 25% capital subsidy, capped at Rs 1.85 crore per KTPA for green ammonia and Rs 2.25 crore per KTPA for green methanol.

Moreover, the developer will receive a full reimbursement of net SGST revenue from the sale of green hydrogen and its derivatives within the State for five years from the commissioning date (CoD).

The government will waive 50% of intra-State transmission charges for five years from CoD for renewable power (with or without storage) procured within the State. This exemption is limited to ₹15 lakh per MW per year of installed electrolyzer capacity.

The government also sanctioned the development of a 2 GW electrolyzer manufacturing facility at Kakinada by John Cockerill Greenko Hydrogen Solutions Private Limited.

Additionally, the government approved a 119 MW wind and 130 MW solar hybrid power plant with Battery Energy Storage (BESS) by Clean Renewable Energy Hybrid Three Pvt. Ltd in Nandyal and YSR districts. Tata Power Renewable Energy Limited will set up a 400 MW solar project near Pattikonda in Kurnool district.

In November 2024, I Am Renew reported that Reliance Industries will develop 500 compressed biogas projects with an investment of Rs 65,000 crore in Andhra Pradesh. In December 2024, the State Minister for Energy Gottipati Ravi Kumar reiterated the support of the government for the setting-up of 500 biogas projects in near future.