The government of Andhra Pradesh has approved a power distribution licence for the upcoming Google data centre in Visakhapatnam, under a newly introduced policy framework that is the first of its kind in the country.
The government recently put in place a policy to grant deemed distribution licences (DDLs) to strategic data centres, recognising the specialised nature of their power procurement and distribution requirements.
Data centre projects undertaken by a single developer or investor with a minimum connected load of 300 megawatts or above within the state are eligible for a DDL. A single investor may also aggregate connected load across multiple data centre locations within the state to meet this threshold.
Power supply under the licence must be restricted exclusively to data centre loads within the licensed area, and the DDL holder will not be permitted to supply power to any third-party consumer outside the area approved by the Andhra Pradesh Electricity Regulatory Commission.
On power procurement, DDL holders will have the freedom to source power from any lawful avenue, including renewable energy generators through bilateral power purchase agreements, open access, captive generating plants, and power exchanges. Solar, wind, and hybrid projects with battery energy storage systems are also permitted sources.