Chief Minister Chandrababu Naidu directed officials to expand power generation, promote solar and pumped storage projects, cut procurement costs and strengthen power utilities.
Amaravati: Andhra Pradesh Chief Minister N. Chandrababu Naidu has directed the Energy Department to prepare comprehensive plans to expand power generation capacity in line with the State’s rapidly increasing electricity demand, while ensuring reliable power supply at lower cost.
Reviewing the functioning of the Energy Department at the Secretariat, the Chief Minister called for a detailed assessment of new generation opportunities, including pumped storage energy projects. He directed officials to examine the feasibility and potential for setting up pumped storage projects at 130 reservoirs across the State.
The proposal was discussed in the context of establishing a pumped storage project at Polavaram. Naidu stressed the need for detailed studies on the economic viability of such projects before proceeding.
The Chief Minister also expressed concern over the possibility of reduced power generation from reservoirs and other projects due to deficient rainfall this year. He directed officials to take advance measures to minimise the impact and ensure uninterrupted electricity generation.
Naidu said industrialisation in Andhra Pradesh was gathering pace and electricity consumption was expected to double every six years. The State, therefore, needed to anticipate future demand and plan generation capacity well in advance.
He also called for stronger measures to reduce power distribution losses and improve the overall efficiency of the electricity network.
The Chief Minister directed officials to accelerate solar power generation and expand rooftop solar adoption under the PM Surya Ghar scheme.
He set a target of installing six lakh solar connections under PM Surya Ghar by September. Another three lakh connections under the non-Surya Ghar category should be completed at the earliest, he said.
Naidu also directed officials to approach the Centre seeking approval for an additional 10 lakh solar connections.
While completing the State’s target under the PM-KUSUM scheme, Andhra Pradesh should also seek an additional 2,000 MW of capacity from the Centre, he said.
The Chief Minister stressed the need to integrate solar, wind and pumped storage resources to create a flexible and reliable power system capable of supplying electricity at a lower cost.
Naidu directed officials to bring down the average power purchase cost to Rs. 4.60 per unit this year and further reduce it to Rs. 4 per unit by 2029.
He emphasised that lowering procurement costs, reducing interest burdens and cutting distribution losses should form the core of efforts to strengthen the financial position of the State’s power utilities without increasing tariffs.
The Chief Minister suggested introducing a performance-based rating system for the six power utilities in Andhra Pradesh.
He directed officials to establish clear and measurable targets for each utility and develop the power companies into efficient organisations capable of competing with leading corporate institutions.
Officials informed the meeting that optimisation of power purchases had already resulted in savings of Rs. 234 crore. A further Rs. 100 crore had been saved through prompt payment rebates.
Responding to the savings, Naidu directed officials to continue efforts to reduce the debt burden of the power utilities. He called for regular consultations with financial institutions to secure loans at lower interest rates and asked officials to highlight the improved performance of the utilities to lenders.
The Chief Minister said power utilities should henceforth borrow primarily for asset creation and capital investments, and avoid taking loans for other requirements.
Naidu appreciated officials for implementing Digital Twin and Asset Health Index systems in the power utilities.
He directed officials to use digital technologies to continuously monitor the condition of critical power assets and proactively assess the health of transformers and other equipment.
Early identification of potential failures would allow repairs or replacements to be undertaken before breakdowns occur, he said. Such preventive measures would help reduce costs while ensuring quality and reliable power supply to consumers.
The meeting was attended by Minister for Energy Gottipati Ravikumar and senior officials.
