Key Messages

Andhra Pradesh's (AP’s) gross state domestic product stood at INR 1,201,736 crore (USD 157.36 billion) in FY 22. The power sector played a crucial role in supporting the state's economic growth. The state initiated power sector reforms as early as 1998 and was also the first state to sign the ‘Power for All’ agreement—the basis for power sector planning in AP—with the Government of India in September 2014.

Currently, the state’s power sector is marked by surplus base power capacity and growing renewable capacity. Managing the grid with high renewable capacity, optimising power purchase costs, and ensuring reliable supply to consumers, pose several challenges. Therefore, a detailed roadmap is needed to address the power sector issues in the state. The Center for Study of Science, Technology and Policy (CSTEP) carried out a study to develop long-term pathways till 2040 for the AP power sector by covering demand, supply, and cost components. These pathways will help the state to make informed decisions on renewable energy (RE) transition and optimise power purchase costs.