Andhra Pradesh plans ₹25,000-crore thermal power expansion with two new plants

The Andhra Pradesh Energy Department is moving forward with plans to establish two new thermal power plants, each with a capacity of 800 megawatts, in a significant expansion of the state's power generation infrastructure. The project, estimated at ₹25,000 crore, is expected to help address the state's escalating electricity requirements while modernizing its power sector.

Bids for the project are anticipated to be invited shortly, marking the first formal step in the procurement process. The initiative reflects the state government's strategy to balance energy security with infrastructure renewal, as the new plants would supplement existing capacity while potentially replacing older, less efficient coal-fired generation units.

Andhra Pradesh has witnessed substantial growth in electricity demand over recent years, driven by industrial expansion, urbanization, and increased domestic consumption. The new thermal plants are positioned as a critical component of the state's energy portfolio, which currently comprises a mix of coal, hydro, and renewable sources.

The project comes as states across India grapple with meeting surging power requirements while transitioning towards cleaner energy sources. The simultaneous retirement of obsolete generation capacity and commissioning of modern plants represents a pragmatic approach to managing the state's long-term energy security needs.