The APERC gave its nod on 6 August 2026 for the state’s distribution companies (DISCOMs) to buy 1,600 MW of coal‑based thermal power. This move follows a recommendation by the CEA to add nearly 5,588 MW of thermal capacity in a phased manner up to the fiscal year 2035‑36.
Key Developments
- APERC’s approval aligns with the RAP prepared by CEA for Andhra Pradesh for 2025‑26 to 2035‑36.
- The APPCC had earlier sought in‑principle approval for the first‑phase 1,600 MW thermal purchase to meet rising demand.
- CAGR of electricity demand is projected at 6.90 % and peak demand at 7.10 % for the period 2025‑26 to 2035‑36.
- By 2035‑36, peak demand could reach 30,927 MW and total consumption 1,68,221 million units (MU), creating a possible deficit of up to 32,694 MU if only existing/planned capacity is used.
Important Facts from the RAP
The RAP projects a total contracted capacity of about 73,699 MW for 2035‑36, broken down as follows:
- Coal‑based: 15,781 MW
- Gas‑based: 591 MW
- Nuclear: 128 MW
- Hydro: 3,131 MW
- Wind: 8,257 MW
- Solar: 24,501 MW
- Distributed Renewable Energy (DRE): 9,960 MW
- Biomass: 51 MW
Storage capacity is projected at 3,931 MW/11,924 MWh of battery storage and 7,370 MW/55,770 MWh of pumped storage.
To bridge the gap, CEA recommends adding 2,260 MW of new coal capacity, 12,600 MW of solar, and 4,200 MW of wind by 2035‑36. It also stresses optimal use of short‑term arrangements like banking and open access to manage seasonal demand dips, especially in July‑September.
Exam Relevance
Understanding this plan is vital for GS‑3 (Economy) questions on energy security, power sector reforms, and renewable purchase obligations. The figures illustrate how state‑level planning dovetails with central policies such as the RPO. The projected deficit highlights the challenge of balancing growth (high CAGR) with sustainable capacity addition.
Way Forward
- Accelerate commissioning of the recommended solar and wind projects to meet RPO targets and reduce reliance on coal.
- Leverage battery and pumped‑storage facilities for peak‑shaving and grid stability.
- Encourage private participation through open‑access and banking mechanisms during low‑demand months.
- Monitor actual demand‑supply trends annually to adjust capacity additions and avoid large deficits.
For UPSC aspirants, the case exemplifies how technical assessments (RAP) translate into policy decisions (APERC approval) and the importance of integrated planning for energy security.