Andhra Pradesh is likely to emerge as a hub for green energy generation in India, with the state Cabinet on Wednesday, 7 September, giving its nod to projects that have a collective investment of ₹81,043 crore.
These investment proposals were cleared by the State Investment Promotion Board (SIPB) in a meeting held two days ago.
In line with India’s climate goals, the Andhra Pradesh government has been promoting green energy projects while inviting investors from the sector to invest in the state.
The new projects approved by the Cabinet on Wednesday are in addition to the Adani Green Energy Ltd (AGEL) proposals to invest ₹60,000 crore in green energy projects in the state.
The state Cabinet, led by Jagan, gave approval for six green energy projects on Wednesday, aggregating ₹81,043 crore, and apparently providing employment to 20,130 people.
These include a 1800MW hydro storage power plant over 1,390 acres by Astha Green Energy with an investment of ₹8,240 crore at Ongimalla in the YSR Kadapa district. It is expected to provide employment to 4,000 people, and is likely to be completed by December 2029.
The Cabinet also approved two pumped hydro storage power projects at Somasila and Erravaram. Shirdi Sai Electricals Limited will take up these two projects of 900MW and 1,200MW, respectively, with a collective cost of ₹8,855 crore. It plans to complete the construction by 2029, so the two plants might employ 1,600 people.
Then there are the pumped hydro storage projects at Owk and Singanamala — 800MW each — with an investment of ₹6,315 crore from Aurobindo Group. Providing employment to 1,600 people, the project is expected to be completed by December 2028.
In the YSR Kadapa district, Indosol Solar would invest ₹33,033 crore for the generation of 7,200MW in pumped hydro, solar, and wind power projects.
AM Green Energy Private Limited will invest ₹5,000 crore for 700MW solar and 300MW wind power projects in the Kurnool and Nandyal districts.
The Greenko Group is expected to invest ₹19,600 crore in pumped storage (1,680MW), solar (2,300 MW), and wind power (250), and provide employment to 4,230 people.
“Green energy will change the face of the economy of the state, providing employment opportunities to youth and also helping farmers increase their productivity and revenue. Major industries are coming forward in this direction,” Jagan said.
The Adani MoU
The Adani Green Energy Ltd (AGEL), which is a part of the Ahmedabad-headquartered Adani Group, has already pledged an investment of ₹60,000 crore in Andhra Pradesh.
Adani Group representatives signed an MoU with the Andhra Pradesh government officials on the sidelines of the annual meeting of the World Economic Forum (WEF) held at Davos on 23 May.
AGEL pledged to establish a 3,700MW-capacity hydro storage project and a 10,000MW solar project in Andhra Pradesh.
The MoU was signed in the presence of Jagan and Adani Group Chairman Gautam Adani.
The Adani Group already plans to set up a data park in Visakhapatnam.
Large project in Kurnool
Jagan, who has been giving emphasis to green energy projects, laid the foundation for the world’s largest Integrated Renewable Energy Storage Project (IRESP) in the Kurnool district on 17 May. The 5,230MW project is being developed by the Greenko Group.
The IRESP is expected to help with decarbonisation to the tune of 50 GWh of electricity daily, offsetting 15 million tonnes of CO2 emissions per annum, which is the equivalent of replacing 5 million cars with electric vehicles or 2.5 million hectares of afforestation.
Greenko’s project would enable the lowest-cost green hydrogen and green molecule production and use, thereby reducing the $25-billion LNG import bill, said the project proponents.
The Greenko Group has signed cloud energy storage contracts with NIIF-backed Ayana Renewables and ArcelorMittal, while the Adani Group and signed an MoU with NTPC for storage services to deliver peak and round-the-clock renewable energy to the Indian market.
The project under construction is part of the largest energy cloud storage platform, which is expected to have 50GWh of daily storage capacity by 2025, and 100GWh by 2027.
The energy cloud is said to be critical and mandatory for energy transition and globally the lowest-cost green molecule production.