Andhra Pradesh power demand to climb 6.9% annually; CEA plans 5,588 MW thermal addition

In a significant step toward meeting the state's future electricity needs, the Andhra Pradesh Electricity Regulatory Commission (APERC) on August 6 approved the state's power distribution companies (DISCOMs) to procure 1,600 MW of coal-based thermal power. This approval comes in the wake of a recommendation by the Central Electricity Authority (CEA) for a phased addition of nearly 5,588 MW of thermal generation capacity by 2035-36.

The recommendation forms part of the CEA's Resource Adequacy Plan (RAP) for Andhra Pradesh for the period from 2025-26 to 2035-36. The Andhra Pradesh Power Coordination Committee (APPCC) had earlier sought in-principle approval for the procurement of 1,600 MW of thermal power in the first phase to address the projected growth in electricity demand and peak load over the next decade.

According to the RAP, the CEA has factored in the Energy Department's forecast that the state's electricity requirement would grow at a compound annual growth rate (CAGR) of 6.90%, while peak demand would rise at 7.10% during the period from 2025-26 to 2035-36. The projections indicate that by 2035-36, peak demand could reach 30,927 MW, and the total electricity requirement could rise to 1,68,221 million units (MU).

The CEA has cautioned that with only the existing and planned generation capacity, the state could face an energy deficit ranging from 471 MU to 32,694 MU during the same period. This underscores the need for timely capacity additions to ensure reliable power supply.

As per the RAP, the total projected contracted capacity for 2035-36 is around 73,699 MW. This includes 15,781 MW of coal-based capacity, 591 MW of gas-based capacity, 128 MW of nuclear capacity, 3,131 MW of hydro power, 8,257 MW of wind power, 24,501 MW of solar power, 9,960 MW from distributed renewable energy (DRE) sources, and 51 MW from biomass. The plan also accounts for storage capacity, with 3,931 MW/11,924 MWh of battery storage and 7,370 MW/55,770 MWh of pumped storage.

The CEA concluded that the existing and planned capacities would need to be augmented with an additional 2,260 MW of coal-based capacity, 12,600 MW of solar capacity, and 4,200 MW of wind capacity to ensure supply reliability and comply with the Renewable Purchase Obligation (RPO) trajectory up to 2035-36.

The authority also recommended optimal utilisation of available resources through short-term arrangements such as banking and short- or medium-term open access. This approach, it said, would be effective in managing variations in demand during July-September, when electricity demand is expected to be significantly lower than in other months due to seasonal factors.