NITI Aayog Proposes Rs 7.5 Lakh Cr Renewable Energy Push For Andhra Pradesh

Amaravati, Feb 6 (KNN) NITI Aayog has released a draft blueprint to position Andhra Pradesh among India’s top three renewable energy hubs by 2035. 

The plan was presented by NITI Aayog CEO B.V.R. Subrahmanyam to State Chief Secretary K. Vijayanand at the Secretariat on Thursday.

Prepared under the ASSET (Accelerating Sustainable State Energy Transition) platform, the blueprint lays out a comprehensive strategy to shift the State towards clean, reliable and affordable energy.

Investment and Employment Projections

The proposal estimates investments of Rs 3.3–Rs 3.4 lakh crore for Andhra Pradesh’s energy transition, along with an additional Rs 4–Rs 4.2 lakh crore to develop the State as a renewable energy export hub, reported TNIE. 

In total, the plan envisages sectoral investments of about Rs 7.5 lakh crore, with nearly 90 per cent expected to come from private players. The transition is projected to generate around 5–6 lakh jobs.

The primary objective is to ensure dependable and affordable clean electricity for households, farmers and industries.

Capacity Expansion Targets

At present, renewable sources account for about 47 per cent of Andhra Pradesh’s power generation. By 2035, the State aims to add 35 GW of solar capacity, 12 GW of wind power and 55–60 GWh of energy storage for domestic consumption.

For national exports, the plan proposes an additional 30 GW of solar power, 25–30 GW of wind capacity, and 10–12 GW of pumped storage projects.

Cost and Infrastructure Plans

According to NITI Aayog estimates, power purchase costs could decline to Rs 3.90–Rs 4 per unit, with overall supply costs maintained below Rs 6 per unit. This is expected to reduce electricity costs across consumer categories.

Infrastructure investments include Rs 65,000–Rs 70,000 crore for modernising transmission networks through green corridors, GIS substations and HVDC lines, and about Rs 40,000 crore for strengthening distribution systems.

The blueprint also proposes expanding distributed solar projects in agriculture to ensure daytime power supply and lower subsidy requirements.

Implementation Timeline

The draft plan is expected to be finalised by March 2026 and submitted to the Central Steering Committee. Implementation is likely to begin by mid-March, with a dedicated ‘Energy War Room’ proposed to track progress.

(KNN Bureau)