Andhra Pradesh to Establish Renewable Economic Zones to Boost Green Energy and Hydrogen Production

Amaravati: The Andhra Pradesh government has unveiled plans to establish Renewable Economic Zones (REZs) as part of its Green Energy Policy. These zones will support a wide range of renewable energy initiatives, including solar, wind, hybrid, and battery storage, with ARRIZs (Advanced Renewable Resource Integration Zones) set up for efficient power generation. The initiative is aimed at expanding the state’s green energy capacity with support for cutting-edge technology, and a viability gap funding (VGF) facility will be available for power plants using advanced methods.

Focused on green hydrogen as a future fuel, the state is collaborating with the National Green Hydrogen Mission to produce green hydrogen at low costs. Recognizing the importance of electrolyzers in these projects, Andhra Pradesh is offering a 25% subsidy for setting up electrolyzer facilities. Additionally, the government will incentivize the first 10 green hydrogen production plants with substantial financial support.

To establish a green hydrogen hub, Andhra Pradesh plans to offer port land at a lease rate of Rs. 1 lakh per acre. In addition, biofuel production plants will also receive state incentives, reinforcing Andhra Pradesh’s commitment to sustainable energy development.