AP Unveils Master Plan To Boost Energy Sector
Andhra Pradesh unveils an energy roadmap for 24/7 power, including 1,600 MW thermal capacity and over 2,000 MW in battery and pumped storage projects.
Andhra Pradesh has unveiled a comprehensive energy roadmap to guarantee uninterrupted 24/7 quality power supply with a view also to mitigate the severe impact of El Niño conditions.
Special chief secretary to Energy, K Vijayanand, announced the strategy at the state power coordination ommittee meeting at Vidyut Soudha in Vijayawada on Tuesday.
The meeting was attended via video conference by APGENCO MD, S Nagalakshmi, AP transco JMD Praveen Chand, APSPDCL CMD Sivasankar Lotheti, APEPDCL CMD Prudhvitej Immadi and APCPDCL CMD Pulla Reddy. It outlined plans to procure 1,600mw of new thermal power and establish over 2,000mw of advanced Battery Energy Storage and pumped hydro projects.
The initiative is designed to eliminate peak-demand deficits, reduce procurement costs, and enhance grid stability.
Under Section 63 of the electricity act, 2003, the state will procure 1,600mw of thermal base-load power through tariff-based competitive bidding on a Design, Build, Finance, Own, and Operate (DBFOO) framework for 12–25 years.
Developers must maintain a mandatory 15-day coal stock and furnish performance guarantees to ensure timely delivery. APGENCO has also been permitted to use imported coal procured transparently through competitive bidding.
To prevent solar energy spillage and meet evening peak demand, AP is deploying 1,500mw/ 6,000 MWh of Battery Energy Storage Systems (BESS) across strategic locations, including the Godavari Gas Power Plant site, Talaricheruvu substations, and major solar-wind hubs.
An additional 500mw / 1,000MWh project is being advanced under the central gvernment’s Viability Gap Funding scheme with NHPC.
The state is also evaluating a 40-year 1,344mw pumped hydro storage project via SECI and seeking APERC approval for 500mw of short-term pumped storage services.
Driven by El Niño, average daily consumption in August surged 20 per cent year-on-year to 269 million units, with peak demand touching 286mu. September loads are projected to reach 14,150mw.
The government’s proactive measures aim to secure free power for agriculture, reliable supply for industries, and uninterrupted electricity for households. “Integrating advanced technologies will fortify the grid against extreme weather challenges, permanently strengthening AP’s energy landscape,” Vijayanand asserted.
