Andhra Pradesh Energy Department to build new Thermal Power Plants of 1,600 MW

Ritika Nair Aug 28, 2026 0

Andhra Pradesh Energy Department has initiated to build two new thermal power plants of 800 MW each. The estimated cost for this project is 25,000 INR-Crore. The AP Electricity Regulatory Commission (APERC) gave its formal approval to the bidding process for the new projects earlier this month. 

It is observed that the state plans to establish two units of 800 MW instead of smaller ones, as thermal generating units with capacities exceeding 660MW (supercritical) are being encouraged due to their efficiency. The two thermal power plants will cost an estimated between 12-15 INR-Crore per MW at current prices. 

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The proposed projects will meet the long term resource adequacy requirements of the state in view of the projected increase in electricity demand and peak load. The plan is to make a phased addition of approximately 5,588 MW of coal based power by FY 2035-36 (1,600 MW in first phase). 


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