Naidu directs plans to boost power generation, cut electricity costs in AP
Andhra Pradesh Chief Minister N Chandrababu Naidu directed officials to expand power generation capacity and reduce electricity costs amid rising demand. He called for feasibility studies of pumped storage projects at 130 reservoirs, greater solar generation and measures to reduce procurement and distribution costs
Amaravati: Andhra Pradesh Chief Minister N Chandrababu Naidu on Thursday directed officials to prepare comprehensive plans to increase power generation capacity in line with the growing electricity demand in the state and ensure the availability of power at lower cost. Reviewing the Energy Department, the chief minister directed officials to study the feasibility and potential for establishing pumped storage energy projects at 130 reservoirs.
“Naidu directed officials to prepare comprehensive plans to increase power generation capacity in line with the growing electricity demand in the state and ensure the availability of power at lower cost,” an official release here said.
He made the suggestion while discussing a proposal to establish a pumped storage project at Polavaram, calling study of the economic feasibility of such projects. Referring to the possibility of difficulties in power generation from various reservoirs and projects due to deficient rainfall this year, he directed officials to take advance measures to ensure uninterrupted power generation.
According to the CM, industrialisation was gathering pace in the state and electricity consumption was expected to double every six years. He called for plans to be prepared to enhance power generation capacity, and also measures to reduce power distribution losses.
Naidu instructed officials to maximise solar power generation. He asked them to take steps to install six lakh solar power connections under PM Surya Ghar by September and another three lakh under the non-Surya Ghar category at the earliest, including applying to the Centre for another 10 lakh connections. While completing the target under the PM-KUSUM scheme, the state should also seek an additional 2,000 MW capacity from the Centre, he said.
Naidu called for integrating solar, wind and pumped storage resources to create a system capable of supplying reliable power at lower cost. The CM directed officials to take measures to bring down the average power purchase cost to Rs 4.6 per unit this year and to Rs 4 per unit by 2029.
Naidu suggested introducing a performance-based rating system for the six power utilities in the state, the release said. He directed officials to set clear targets for each utility and develop power companies to compete effectively with leading corporate organisations. Officials informed him that optimisation of power purchases had resulted in savings of Rs 234 crore while another Rs 100 crore had been saved through prompt payment rebates.
The chief minister directed officials to take continuous measures to reduce the debt burden on power utilities. He called for regular consultations to secure lower interest rates on the utilities’ loans and directed officials to highlight the improving performance of the utilities to financial institutions, the release added.
Naidu noted that power utilities should henceforth borrow only for asset creation and capital investments, avoiding availing loans for other requirements. The financial position of utilities should be strengthened without increasing tariffs by reducing power procurement costs, interest burden and distribution losses, he said.
Naidu appreciated officials for implementing Digital Twin and Asset Health Index systems in the power utilities. He directed them to digitally monitor the condition of assets in the power system and proactively assess the health of transformers and other equipment so that repairs or replacements could be undertaken in advance. Such measures would reduce costs and ensure the supply of quality power to consumers, he added.
