Andhra Pradesh, a leader in India’s industrial and progressive landscape, is spearheading the nation’s renewable energy transition. With rising energy demands and the critical need for decarbonization, *Make in Andhra Pradesh* envisions the state as a frontrunner in clean energy. The Andhra Pradesh New and Renewable Energy Policy 2026 lays the groundwork for the state to harness its abundant renewable energy (RE) resources, foster sustainable growth, and drive India toward energy security and environmental sustainability.
Recognizing the importance of an inclusive energy transition, Andhra Pradesh is dedicated to creating new job opportunities, particularly for the youth and workforce, by promoting skill development in the renewable energy sector.
The *Andhra Pradesh New and Renewable Energy Policy 2026* outlines key strategic objectives to position the state as a global leader in renewable energy:
Andhra Pradesh will promote the development of large-scale solar, wind, and hydro projects, alongside emerging technologies such as floating solar, canal-top solar, and green hydrogen production. The state aims to achieve 50 GW of renewable energy capacity by 2026, ensuring a reliable and resilient energy supply that supports industrial growth, urbanization, and energy-intensive sectors.
To integrate intermittent renewable energy into the grid, Andhra Pradesh will focus on developing energy storage systems and green hydrogen projects. These technologies are essential for maintaining grid stability, ensuring a continuous supply of renewable energy, and fueling future mobility with green hydrogen. The state will also pioneer green ammonia production, supporting the decarbonization of industries such as steel, cement, and chemical manufacturing.
Andhra Pradesh will promote the domestic manufacturing of renewable energy components, including solar modules, wind turbines, and battery systems. The policy will offer incentives to attract investments in renewable energy manufacturing facilities and support research and development hubs focused on next-generation energy technologies. By building a local renewable energy supply chain, Andhra Pradesh will not only meet its own energy requirements but also play a key role in boosting India’s renewable energy export market.
To ensure an inclusive transition, Make in Andhra Pradesh will prioritize skill development in the renewable energy sector. Training programs will be launched to equip over 50,000 professionals with expertise in areas such as solar energy installation, wind turbine maintenance, energy auditing, and green hydrogen production. The objective is to empower Andhra Pradesh’s workforce to take a leading role in the global energy transition.
Andhra Pradesh will strategically attract both domestic and international investments by offering a range of incentives, including tax exemptions, capital subsidies, and reduced cross-subsidy charges. The state will foster a business-friendly environment by simplifying project approvals through a Single Window Clearance system, positioning Andhra Pradesh as the leading destination for global green energy investments.
The Andhra Pradesh New and Renewable Energy Policy 2026 provides a range of incentives to promote investments in renewable energy projects:
| Incentive Type | Details |
| Electricity Duty Exemption | 50 paise per unit exemption on Electricity Duty for captive/open access consumers of RE projects for 15 years. If commissioned before 31.03.2026, the exemption extends to 20 years. |
| Cross-Subsidy Surcharge Exemption | 50% exemption on cross-subsidy surcharge for open access consumers of RE projects for 15 years. |
| STU Charges Exemption | 20 paise per unit exemption on State Transmission Utility (STU) charges for RE consumers, extended to 20 years for projects commissioned before 31.03.2026. |
| Wheeling Charges Exemption | 25% exemption on wheeling charges for 15 years for RE projects. |
| Stamp Duty and Land Conversion Exemption | 100% exemption on stamp duty, land conversion, and registration charges for RE projects. |
| Energy Storage Incentives | Electricity Duty exemption on input energy for energy storage projects for 15 years. |
| Government Land for RE Projects | Priority allocation of government land at concessional rates for RE projects, with leases available for 30-35 years. |
Andhra Pradesh is dedicated to simplifying the process for renewable energy developers. A Single Window Committee, headed by the Principal Secretary of the Department of Energy, will facilitate streamlined project approvals for RE projects under 50 MW. Larger projects will be referred to higher committees for expedited approvals. This approach ensures quick approvals, reduced regulatory obstacles, and effective monitoring of project execution.
The Andhra Pradesh New and Renewable Energy Policy 2026 is a visionary initiative aimed at making Andhra Pradesh a leader in India’s renewable energy sector. Through strategic investments, fostering innovation, and developing a skilled workforce, the state will drive India’s shift to a clean energy future, supporting global climate goals and enhancing energy security.