Andhra Pradesh to study pumped storage at 130 reservoirs for cheaper power

Chief Minister N. Chandrababu Naidu has directed officials to expand power generation capacity in line with the state's growing demand and ensure consumers receive electricity at lower costs. Reviewing energy department operations at the State Secretariat in Amaravati on Thursday, Naidu ordered a feasibility study for pumped storage projects at 130 reservoirs across Andhra Pradesh.

Pumped storage works like a large water battery: surplus electricity is used to pump water to a higher elevation, and when power is required, the water is released downhill through turbines to generate electricity. The Chief Minister specifically mentioned the proposed pumped storage project at Polavaram and called for an economic feasibility assessment.

Naidu cautioned that deficient rainfall could impact hydropower generation at several reservoirs and directed officials to take advance measures to avoid disruptions. With accelerating industrialisation, electricity consumption in the state could double every six years, he noted, stressing the need for long-term generation planning and further reduction of distribution losses.

Focusing on solar and renewable energy, Naidu instructed officials to expedite six lakh solar connections under the PM Surya Ghar scheme by September and install another three lakh connections outside the scheme. He also asked the state to seek approval from the central government for ten lakh additional connections. Under the PM-KUSUM scheme, officials were told to meet existing targets and request an additional 2,000 MW of capacity from the Centre. He emphasised that solar, wind, and pumped storage resources should be integrated to provide reliable and affordable power.

The Chief Minister set targets to bring down power purchase costs to ₹4.60 per unit this year and ₹4 per unit by 2029 through measures such as power swapping, renewable energy expansion, and storage models. He proposed performance-based ratings for the state's six power utilities, with clear targets to make them financially and operationally competitive with corporate entities.

Officials reported that power purchase optimisation had saved ₹234 crore, while prompt-payment rebates yielded an additional ₹100 crore. Naidu directed them to reduce the utilities' debt burden and negotiate lower interest rates with financial institutions. He said utilities should borrow only for asset creation and capital investment, while costs should be lowered through reduced procurement expenses, interest liabilities, and distribution losses.

The Chief Minister also appreciated the use of digital twin technology and the Asset Health Index system to monitor power assets, predict equipment failures, and reduce maintenance costs while improving power quality. These measures are expected to contribute to a more efficient and cost-effective power supply for the state.