Andhra Pradesh to Procure 1,600 MW Coal Power to Meet Rising Demand

The Andhra Pradesh Electricity Regulatory Commission has given in‑principle approval for the state to procure 1,600 MW of coal‑based thermal power through a tariff‑based competitive bidding process under the Electricity Act, using a Design‑Build‑Finance‑Own‑and‑Operate model. The procurement is the first phase of a long‑term plan that envisions adding about 5,588 MW of coal‑fired capacity by FY 2035‑36 to address projected growth in electricity consumption and peak load.

The new capacity is intended to provide firm, dispatchable power that can support the grid during periods of high demand or low renewable generation, complementing Andhra Pradesh’s expanding renewable‑energy portfolio. The regulator has asked distribution companies to prioritize connection to the state transmission network to optimise utilisation and reduce delays associated with inter‑state connectivity.