Power sector in Andhra Pradesh

Power sector of Andhra Pradesh is divided into 4 categories namely Regulation, Generation, Transmission and Distribution. Andhra Pradesh Electricity Regulatory Commission (APERC) is the regulatory body. APGENCO deals with the electricity production and also maintenance, proposes new projects and upgrades existing ones as well. The APGENCO also set up a Special Purpose Vehicle (SPV), named as Andhra Pradesh Power Development Company Limited (APPDCL), a joint venture company of APGENCO (with 50% equity) and IL&FS (50% equity) to set up Krishnapatanam thermal power project (2x800 MW).

APTRANSCO is set up for transmission of power. APGENCO, APPDCL, NTPC and other private firms contribute to the generation of power in the state of Andhra Pradesh. Andhra Pradesh has become the second state in India to achieve 100% electrification of all households. Weighted average cost of power generation and purchases is INR 3.45 per kWh which is highest in the country. Andhra Pradesh is also leader by installing 433 nos electric vehicle charging stations (EVCS) out of 927 nos installed in the entire country as on 30 June 2020.

Under the program of installing 500 GW capacity of renewable power capacity by 2030, nearly 59 GW (25%) of solar and wind power is identified out of 236.58 GW in three districts of the state.

The newly formed Andhra Pradesh Green Energy Corporation Limited (APGECL), a 100% subsidiary of APGENCO, will be the trading agency/licensee for the 10 GW solar project in a phased manner and for connecting it to the grid. The 10 GW solar projects would be used to meet the entire agriculture power consumption which will be met during the day time for nine hours duration daily. Andhra Pradesh is also leading in installation of solar power /off grid agriculture pump sets. A renewable energy export policy for Andhra Pradesh was also announced to facilitate the setting up of 120 GW solar, wind and solar-wind hybrid energy parks by using 0.5 million acres of land. New & Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP), a state owned company, is actively involved in promoting renewable energy projects in the state. Roof top solar power cost/unit in the state are falling below the domestic power tariff.

The total installed utility power generation capacity is nearly 24,854 MW in the state as of 31 March 2020 APtransCo has made long term power purchase agreements for 19,068 MW as of 31 March 2019. The per capita electricity consumption is 1234 units with 63,143 million KWh gross electricity supplied in the year 2018–19. The performance of Krishnapatanam thermal power station (2X800 MW) with super critical pressure technology is not satisfactory even after one year commercial operation as the units rarely operate at rated capacity forcing the state to purchase costly power from day ahead trading in IEX.