Power demand in Andhra Pradesh projected to grow at 6.90% CAGR over next decade

The Andhra Pradesh Electricity Regulatory Commission’s (APERC) approval on August 6 to the State’s distribution companies (DISCOMs) to procure 1,600 MW of coal-based thermal power 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 was made as 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 meet the projected increase in electricity demand and peak load over the next decade.

In the RAP, the CEA took into consideration the Energy Department’s forecast that the State’s electricity requirement would grow at a compound annual growth rate (CAGR) of 6.90% and peak demand at 7.10% during 2025-26 to 2035-36.

The CEA noted that peak demand and electricity requirement were projected to rise to 30,927 MW and 1,68,221 million units (MU), respectively, by 2035-36. The State could face an energy deficit ranging from 471 MU to 32,694 MU during the period with only the existing and planned generation capacity available.

According to the RAP, the total projected contracted capacity for 2035-36 is around 73,699 MW. This comprises 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 projected storage capacity includes 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 generation 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 reliability of supply and compliance with the Renewable Purchase Obligation trajectory up to 2035-36.

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