Andhra Pradesh Energy Dept. gearing up to set up two new thermal power plants of 800-MW each

It is planned to make a phased addition of approximately 5,588 MW of coal-based power by FY 2035-36. | Photo Credit: File Photo The proposed 1,600 Megawatts thermal power capacity addition by the Energy Department to meet the twin objectives of catering to the State’s burgeoning demand for electricity and substituting them for the obsolete coal-based generation units is estimated to cost up to ₹25,000 crore.The bidding process for the new projects, for which the AP Electricity Regulatory Commission (APERC) gave its formal approval earlier this month, is set to commence soon.Less carbon footprintAccording to a top official in the AP-Genco, two units of 800 MW each have been planned to be established instead of smaller ones, as thermal generating units with capacities exceeding 660 MW (supercritical) are being encouraged due to their efficiency, relatively less carbon footprint and other technical advantages. It is estimated that the establishment of an 800-MW unit costs between ₹12 and ₹15 per MW at current prices.Bids will be invited for setting up the units on Design, Build, Finance, Own and Operate basis, and both public and private generators, including the State-owned Genco, are free to participate.The AP Power Coordination Committee had earlier submitted the proposal for creating the additional 1,600 MW of thermal power to 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 the first phase).Why capacity additionThe Genco official told The Hindu that while the rising demand for electricity was one factor driving the new capacity addition, it was also required by the situation arising from the impending closure of thermal units older than 25 years by the year 2030.It is to be noted that six out of the eight units of Dr. Narla Tatarao Thermal Power Station near Vijayawada and one of the four units at M.V. Ramana Reddy Rayalaseema Thermal Power Plant are at least 30 years old, qualifying for closure by the given deadline, which is not likely to be extended further.Meanwhile, the plan to construct a thermal power plant in Srikakulam district, which is considered a better choice than to set up a pit-head facility at Talcher in Odisha for multiple reasons, is yet to make headway because of land acquisition and other issues. However, the plan is still alive. Published - August 27, 2026 07:50 pm IST