APERC Approves 1,600 MW Coal Power Procurement – CEA’s RAP Calls for 5,588 MW Thermal Additions by 2035‑36
On 6 August 2026, APERC approved a 1,600 MW coal power purchase for Andhra Pradesh DISCOMs, aligning with CEA’s Resource Adequacy Plan that calls for an additional 5,588 MW of thermal capacity by 2035‑36 to meet a projected 6.90% CAGR in electricity demand and avoid a potential deficit of up to 32,694 MU.
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. UPSC Rele
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Key Insight
APERC’s 1,600 MW coal approval underscores Andhra Pradesh’s urgent power‑security challenge.
Key Facts
- APERC ने 6 August 2026 को 1,600 MW कोयला‑आधारित पावर खरीद को मंजूरी दी।
- CEA की RAP ने FY 2035‑36 तक आंध्र प्रदेश में 5,588 MW थर्मल क्षमता जोड़ने की सिफारिश की है।
- राज्य में बिजली मांग 6.90 % CAGR (2025‑26 से 2035‑36) पर बढ़ने का अनुमान है।
- FY 2035‑36 तक पीक मांग 30,927 MW तक पहुँच सकती है, जिससे 32,694 million units का संभावित घाटा बन सकता है।
- 2035‑36 के लिए कुल अनुबंधित क्षमता 73,699 MW है (कोयला 15,781 MW, सोलर 24,501 MW, विंड 8,257 MW, आदि)।
- CEA 2035‑36 तक 2,260 MW कोयला, 12,600 MW सोलर और 4,200 MW विंड के नए जोड़ की सलाह देता है।
- बैटरी स्टोरेज का अनुमान 3,931 MW/11,924 MWh और पम्प्ड स्टोरेज 7,370 MW/55,770 MWh है।
Background
The approval shows how a state regulator translates a central technical plan into concrete procurement, linking power‑sector reforms, renewable purchase obligations and energy‑security goals. It illustrates the interplay of governance, economic growth and environmental sustainability taught in GS‑3.
UPSC Syllabus
- GS3 — Infrastructure - Energy, Ports, Roads, Airports, Railways
- Prelims_GS — Environmental Issues and Climate Change
- GS1 — Distribution of Key Natural Resources
- Prelims_GS — Physics and Chemistry in Everyday Life
- Essay — Environment and Sustainability
Mains Angle
GS‑3 (Economy) – Discuss integrated power planning in fast‑growing states, focusing on the balance between thermal additions and renewable targets, using APERC’s 2026 decision and the CEA RAP as examples.