After the bifurcation of Andhra Pradesh in 2014, the state faced significant challenges in terms of power generation and distribution, as a substantial portion of the power infrastructure was left with the newly formed state of Telangana. The division highlighted the need for Andhra Pradesh to rebuild its power generation capacity, focus on renewable sources, improve transmission infrastructure, and ensure energy security to support the state’s economic growth and industrialization.
Post-Bifurcation Challenges and Power Deficit
Following bifurcation, Andhra Pradesh experienced an initial power deficit, primarily due to the allocation of several power generation plants to Telangana. While Telangana inherited the majority of the thermal power plants, Andhra Pradesh retained most of the hydroelectric power resources. This imbalance created an immediate need for the state to address its power deficit to meet the demands of residential, agricultural, and industrial consumers.
The post-bifurcation power allocation left Andhra Pradesh with approximately 46% of the generation capacity and Telangana with around 54%. At the time, Andhra Pradesh’s demand-supply gap hovered around 22 million units (MU) per day, with power demand often surpassing the available supply, especially during peak periods. This discrepancy motivated Andhra Pradesh to seek additional sources of energy and improve its generation capacities.
Growth in Power Generation Capacity
To address the shortfall, Andhra Pradesh focused on increasing its power generation capacity through both renewable and non-renewable sources. By 2023, the state achieved notable progress in expanding its capacity, making it one of India’s fastest-growing states in renewable energy generation. The state government set ambitious goals, including achieving energy self-sufficiency and positioning Andhra Pradesh as a leader in renewable energy.
- Thermal Power Plants: Andhra Pradesh ramped up its thermal power generation to compensate for the deficit created post-bifurcation. Key projects included expansions in units under the Andhra Pradesh Power Generation Corporation (APGENCO) and long-term power purchase agreements with other thermal power plants. Major thermal plants include:
- Dr. Narla Tata Rao Thermal Power Station (Vijayawada): A critical source of power, with an installed capacity of approximately 1,760 MW.
- Rayalaseema Thermal Power Plant: Located in Kadapa district, it contributes around 1,650 MW to the state grid.
- Krishnapatnam Thermal Power Station: Operated by APGENCO, with a capacity of 2,000 MW, contributing significantly to the state’s power supply.
- Renewable Energy: Andhra Pradesh adopted a proactive approach to renewable energy, particularly focusing on solar and wind energy projects.
- Solar Power: Andhra Pradesh’s favorable geography has allowed rapid development in solar energy. The government introduced incentives and investor-friendly policies, aiming to achieve a solar capacity of 10 GW by 2024. Large solar parks, like the Kurnool Ultra Mega Solar Park with a capacity of 1,000 MW, made the state a top solar power producer.
- Wind Energy: With a coastline of 972 kilometers and abundant wind resources, the state achieved significant wind power capacity. Projects were set up in districts such as Anantapur, Kurnool, and Kadapa. By 2023, Andhra Pradesh’s wind energy capacity stood at around 4,000 MW.
- Hydropower: The Krishna and Godavari rivers provide Andhra Pradesh with substantial hydropower potential. Key hydropower stations include the Srisailam Left Bank Hydro Power Station and the Nagarjuna Sagar Left Canal Power House. Combined, the hydropower facilities contribute over 1,000 MW to the state’s grid, with Srisailam alone providing around 900 MW.
Transmission and Distribution Improvements
Andhra Pradesh recognized the need for an upgraded and efficient transmission and distribution network to support its expanding power generation capacity. The state government initiated projects to enhance transmission lines, reduce transmission losses, and improve grid stability. Initiatives included:
- Strengthening of Transmission Network: The Andhra Pradesh Transmission Corporation (APTRANSCO) undertook projects to build new substations and upgrade existing ones, allowing for a more reliable supply. The state reduced transmission and distribution losses from around 15% in 2014 to about 10% by 2023.
- Smart Grid Initiatives: Andhra Pradesh implemented smart grid technologies to manage demand and supply better. The real-time monitoring systems, data analytics, and automated controls have optimized power distribution, reducing outages and improving reliability.
Renewable Energy Policies and Investments
The state’s favorable policies attracted substantial investments in renewable energy projects. Andhra Pradesh’s Renewable Energy Export Policy, introduced in 2020, encouraged private players to invest in solar and wind energy and export surplus power to other states. This policy created a competitive environment, attracting significant investments from global and domestic players.
The state received investments from major renewable energy companies, including ReNew Power, Adani Green Energy, and Greenko. Additionally, international financial institutions and development banks provided funding, further accelerating project development. These investments helped Andhra Pradesh position itself as a renewable energy hub, with more than $3 billion invested in solar and wind projects alone between 2015 and 2023.
Energy Storage and Grid Stability
The intermittent nature of solar and wind energy necessitated the need for reliable energy storage solutions to ensure grid stability. Andhra Pradesh began integrating battery storage systems and exploring pumped hydro storage solutions to manage renewable energy fluctuations. The Pinnapuram Integrated Renewable Energy Project, a hybrid solar-wind project with a significant storage component, is one example of Andhra Pradesh’s efforts to ensure a balanced and stable energy supply.
Energy Efficiency Initiatives
In addition to expanding power generation, Andhra Pradesh focused on demand-side management and energy efficiency. Initiatives included the deployment of energy-efficient lighting, appliances, and industrial practices to reduce overall consumption. The state distributed LED bulbs and energy-efficient fans under the Ujala Scheme, leading to an estimated energy saving of 500 million units annually.
Furthermore, the government incentivized industries and commercial establishments to adopt energy-efficient technologies, reducing energy consumption by an additional 300 million units per year by 2023. These efforts contributed to meeting demand without solely relying on new generation capacity.
Power Purchase Agreements and Inter-State Collaboration
To address immediate energy needs and ensure stable power supply, Andhra Pradesh entered into power purchase agreements (PPAs) with power producers in other states. The state established long-term agreements with private producers and neighboring states to secure additional capacity and bridge the supply-demand gap, especially during peak demand periods.
Moreover, Andhra Pradesh collaborated with the national grid through the Southern Power Grid, enabling it to procure power from neighboring states during shortages and export excess renewable energy when available. This inter-state collaboration improved grid stability and provided flexibility to meet the fluctuating demand.
Data on Power Generation and Consumption
- Installed Capacity: As of 2023, Andhra Pradesh’s installed power capacity reached approximately 25 GW, with renewable sources contributing about 10 GW.
- Power Consumption Growth: Power demand in Andhra Pradesh grew by an annual average rate of 8% from 2014 to 2023, reflecting the state’s industrialization and economic growth.
- Renewable Energy Contribution: Renewable energy contributed around 40% to Andhra Pradesh’s energy mix by 2023, a remarkable achievement considering the national average of around 30%.
- Reduction in Power Deficit: By 2023, Andhra Pradesh had largely addressed its power deficit, achieving a power surplus during off-peak hours and a minimal deficit during peak periods.
Future Outlook and Targets
Andhra Pradesh’s power sector has ambitious goals for the coming decade. The government aims to increase the share of renewables to 60% of the total energy mix by 2030, driven by additional solar and wind projects. Plans include:
- Expansion of Solar Capacity: Andhra Pradesh aims to add an additional 8 GW of solar capacity by 2030, focusing on floating solar projects on reservoirs and water bodies.
- Offshore Wind Projects: With a long coastline, Andhra Pradesh is exploring offshore wind potential to further diversify its renewable energy sources.
- Hydropower Projects: The state plans to harness small and medium-sized hydropower projects along its river systems to augment energy supply.
Conclusion
Since bifurcation, Andhra Pradesh has achieved remarkable progress in power generation and infrastructure. Through a combination of policy-driven renewable energy expansion, capacity addition in thermal power, and investments in transmission and distribution, Andhra Pradesh not only managed to overcome its initial power deficit but also positioned itself as a renewable energy leader. The state’s strategy of balancing non-renewable and renewable sources, enhancing grid reliability, and investing in energy storage solutions has provided a robust foundation for sustainable energy growth. Moving forward, Andhra Pradesh’s commitment to renewable energy, storage technology, and energy efficiency will be crucial in meeting its future energy demands while reducing its environmental footprint, supporting industrialization, and enhancing the quality of life for its citizens.
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