Andhra Pradesh Plans Rs 28436 Crore Green Energy Corridor

Andhra Pradesh has unveiled an ambitious ₹28,436 crore green energy corridor to accelerate its transition to renewable energy and integrate new projects into the national grid.

Chief Minister N. Chandrababu Naidu made the announcement as part of the state’s broader target to generate 72 GW of green energy by 2029. The corridor is designed to evacuate 11,000 MW from upcoming renewable projects and an additional 7,000 MW from pumped storage facilities. Key infrastructure elements will include transmission lines and central substations, marking a crucial step in supporting India’s renewable energy objectives. The project’s most pressing challenge lies in bridging the supply-demand gap across regions. While the bulk of generation will come from Rayalaseema, demand is surging in coastal areas—home to green hydrogen hubs, data centres, and large-scale industries. Compounding the issue, several developers with land allocations in Rayalaseema have not commenced construction, delaying further project approvals.

To overcome this, the state has proposed a dedicated Extra High Tension (EHT) transmission network linking Rayalaseema’s generation clusters with coastal demand centres. Acting on a directive from the Central Electricity Authority issued on 17 December 2024, the state submitted a detailed network plan within ten days. The proposal is now under central government review. The corridor will follow the standard funding model for green infrastructure: 40 percent central government grant through the Ministry of New and Renewable Energy, 40 percent through loan financing, and 20 percent equity investment from Power Grid Corporation of India. This initiative aligns Andhra Pradesh with other renewable-intensive states like Rajasthan and Gujarat, which are also integrating their green power sources into the evolving national corridor.

If cleared, the project is expected to strengthen the backbone of India’s green energy supply chain and drive economic development across high-demand coastal zones.

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Andhra Pradesh Plans Rs 28436 Crore Green Energy Corridor