AP plans major power capacity expansion

Metro India News | AMARAVATI

Andhra Pradesh Chief Minister N Chandrababu Naidu on Thursday directed officials to prepare comprehensive plans to increase power generation capacity in line with rising demand and ensure electricity is available at lower cost.

Reviewing the Energy Department, Naidu asked officials to study the feasibility of pumped storage energy projects at 130 reservoirs, including the proposed project at Polavaram. He also called for advance measures to maintain uninterrupted generation in view of deficient rainfall this year.

Naidu said industrialisation was accelerating and electricity consumption was expected to double every six years. He directed officials to increase generation, reduce distribution losses and maximise solar power generation.

He asked officials to install six lakh solar connections under PM Surya Ghar by September and another three lakh under the non-Surya Ghar category. The state should also seek approval from the Centre for another 10 lakh connections. Under PM-KUSUM, Andhra Pradesh should complete its target and seek an additional 2,000 MW capacity, he said.

Naidu called for integrating solar, wind and pumped storage resources to ensure reliable, low-cost power. He directed officials to reduce average power purchase costs to Rs 4.60 per unit this year and Rs 4 by 2029.

He also proposed performance-based ratings for the state's six power utilities, with clear targets for each. Officials said power purchase optimisation had saved Rs 234 crore, while prompt payment rebates saved another Rs 100 crore.

Naidu directed officials to reduce utilities' debt burden by securing lower interest rates and restricting borrowings to asset creation and capital investment. He stressed that utilities' finances should improve without raising tariffs.

The CM also appreciated the use of Digital Twin and Asset Health Index systems and directed officials to digitally monitor equipment, enabling timely repairs or replacements and ensuring quality power supply.