Andhra Pradesh's Clean Energy Transformation

NITI Aayog has unveiled a draft blueprint to turn Andhra Pradesh into one of India's top three renewable energy hubs by 2035. The plan was presented on February 6, 2026, as part of the ASSET (Accelerating Sustainable State Energy Transition) platform.

Major Investment Plan

The blueprint outlines a massive investment of ₹7.5 lakh crore to power Andhra Pradesh's clean energy transition. Nearly 90% of this investment is expected to come from private sector players, showing strong business confidence in the state's green future.

The investment is split into two main areas:

  • ₹3.3-3.4 lakh crore for domestic energy transition (to meet the state's own power needs)
  • ₹4-4.2 lakh crore to develop Andhra Pradesh as a renewable energy export hub (supplying clean power to other states)

Power Generation Targets

Currently, about 47% of Andhra Pradesh's power comes from renewable sources. By 2035, the state aims to dramatically increase this with:

  • 35 gigawatt (GW) of solar power for domestic consumption
  • 12 GW of wind power for local use
  • 55-60 gigawatt hour (GWh) of energy storage capacity

For national-level renewable energy exports, the targets include:

  • 30 GW of solar power
  • 25-30 GW of wind power
  • 10-12 GW of pumped storage capacity

Affordable Electricity for All

One of the most exciting aspects of this plan is the promise of low-cost electricity:

  • Power purchase costs estimated at ₹3.90-4 per unit
  • Overall supply costs expected to stay below ₹6 per unit

This will benefit households, farmers, and industries by reducing electricity bills, improving farm incomes, and making local industries more competitive.

Infrastructure Development

To support this renewable energy expansion, the blueprint includes:

  • ₹65,000-70,000 crore investment in transmission infrastructure including green energy corridors, Gas Insulated Substations, and High Voltage Direct Current lines
  • ₹40,000 crore to strengthen power distribution networks across the state
  • Distributed solar projects specifically for agriculture to ensure reliable daytime power supply

Timeline and Implementation

The draft plan will be finalized by March 2026 and submitted to the Central Steering Committee. Implementation is expected to begin by mid-March 2026, with a dedicated Energy War Room to monitor progress and solve problems quickly.

This blueprint aligns with Andhra Pradesh's Swarna Andhra Vision and long-term industrial growth strategy, creating an estimated 5-6 lakh new jobs and significantly boosting the state's economy.