AP to be Turned into Green Energy Corridor, Says CM

At a review meeting he held on the power sector on Wednesday, Naidu emphasized the necessity for short, medium and long-term strategies to adapt to the ever-evolving global energy landscape.

Naidu assessed situations vis-a-vis electricity supply, projects, investments, and ways to reduce electricity charges. The review meeting was attended by energy minister Ravi Kumar, chief secretary Vijayanand and officials from AP Transco and Genco.

The CM cited the rapid expansion of renewable energy into everyday life, asserting that the future belongs to green energy. He stressed the importance of studying how to reduce production costs in renewable energy.

Electricity consumption in the state, he said, was projected to increase by about 8.9 per cent over the next two to three years. Officials must develop plans to correspond with this growth in green energy production.

Naidu also called for exploration of methods to generate electricity at the lowest cost using technologies like artificial intelligence. “It is not acceptable to impose electricity charges on consumers,” he said, urging officials to search for non-tariff revenue sources.

He suggested generating additional income by leasing the fiber optic network currently implemented by AP Transco, which could potentially yield revenues of up to `70,000 crore.

The chief minister highlighted the need to significantly decrease electricity distribution losses in the state, which is currently at 9 per cent. He suggested effective management of feeders and categorizing them for better tracking.

Naidu emphasized the potential to utilize locally produced electricity to reduce transmission losses. “Modernizing transmission lines and ensuring proper maintenance can lead to significant reductions in distribution losses. Previously, energy auditing helped identify electricity theft and distribution losses, enabling better management post-audit,” he stressed.

Officials, he said, must conduct an in-depth study of current electricity consumption and try to minimize electricity purchases from the open market.

Chief secretary Vijayanand cited the state’s goal to reduce power purchasing costs to `4.80 per unit. Naidu mentioned the possibility of leveraging sensors and drones to continuously assess weather conditions and adjust electricity production accordingly.

Electricity consumption reportedly increased to about 270 million units during March-April this year, with agricultural usage also rising.

The CM asked officials to study the expenditure involved in electricity production, identifying regions suitable for solar and wind projects. He noted that establishing projects in areas with wind potential could lead to significant electricity production and cost reductions.

Currently, thermal electricity production costs around `5-6 per unit, while wind energy is generated at just `4.6 per unit. Naidu mentioned the possibility of setting up 65 gigawatts of wind energy projects and highlighted opportunities for pumped energy applications in the Rayalaseema region.

Officials said projects worth `3.19 lakh crore in the renewable energy sector have been initiated since June 2024. In addition, Naidu recommended using modern technology to prevent electricity accidents, voltage issues, and leakages. He proposed analyzing outdated electricity lines using artificial intelligence and implementing predictive maintenance technology.