Andhra Pradesh will procure 1,600 MW of coal-based thermal power to meet the State’s rising electricity demand and strengthen long-term energy security.
The Andhra Pradesh Electricity Regulatory Commission has granted in-principle approval to the State’s power distribution companies to initiate a competitive bidding process for the procurement.
The power will be procured through Tariff-Based Competitive Bidding under Section 63 of the Electricity Act, 2003, using the Design, Build, Finance, Own and Operate model, said an official release on Friday.
The bidding process will be based on the standard Request for Qualification, Request for Proposal and Power Supply Agreement documents notified by the Union Ministry of Power.
The proposed procurement represents a significant opportunity for power developers seeking long-term supply contracts in Andhra Pradesh, where electricity consumption and peak demand are projected to increase substantially over the coming decade.Geographic Reference
The 1,600 MW procurement forms the first phase of Andhra Pradesh’s long-term thermal capacity addition programme.
The Central Electricity Authority’s Resource Adequacy Plan for Andhra Pradesh has recommended the phased addition of approximately 5,588 MW of coal-based thermal generation capacity by FY 2035-36.
Of this, 1,600 MW is proposed to be procured in the first phase to address the State’s projected increase in electricity demand and peak load.
The move comes as Andhra Pradesh expands industrial activity, urban infrastructure and electricity-intensive investments across sectors.
