Power sector of Andhra Pradesh is divided into 4 categories namely Regulation, Generation, Transmission and Distribution.

[1] APGENCO deals with the electricity production and also maintenance, proposes new projects and upgrades existing ones as well.

[2] The APGENCO also set up a Special Purpose Vehicle (SPV), named as Andhra Pradesh Power Development Company Limited (APPDCL), a joint venture company of APGENCO (with 50% equity) and IL&FS (50% equity) to set up Krishnapatanam thermal power project (2x800 MW).

[4] APGENCO, APPDCL, NTPC and other private firms contribute to the generation of power in the state of Andhra Pradesh.

[8] Weighted average cost of power generation and purchases is INR 3.45 per kWh which is highest in the country.

[11] The newly formed Andhra Pradesh Green Energy Corporation Limited (APGECL), a 100% subsidiary of APGENCO, will be the trading agency/licensee for the 10 GW solar project in a phased manner and for connecting it to the grid.

[12] The 10 GW solar projects would be used to meet the entire agriculture power consumption which will be met during the day time for nine hours duration daily.

[13] Andhra Pradesh is also leading in installation of solar power /off grid agriculture pump sets.

[19][21] The performance of Krishnapatanam thermal power station (2X800 MW) with super critical pressure technology is not satisfactory even after one year commercial operation as the units rarely operate at rated capacity forcing the state to purchase costly power from day ahead trading in IEX.

However many of these power plants are not operating due to non-availability of natural gas and high cost of liquid fuels.

Pumped hydroelectric energy storage (PHES) projects with high water head are the cheap means of converting intermittent renewable power generation sources like solar PV or wind power in to base load supply for round the clock needs throughout the year.

[47][48] AP state is endowed with vast PHES potential adequate to utilise its vast solar PV power generation potential (above 1,000,000 MW installed on 16,000 km2 marginal lands) to meet ultimate green energy requirements of its peak population (60 million).

[49] AP is considering on a major scale to install PHES projects to make available the surplus wind / solar power during the peak load hours.

Cheaper drilling and blasting method is extensively used deploying state of the art earth moving equipment because huge quantity of rock excavation is required for the construction of the rock-fill dams.

The average water head available is 600 m with a provision to draw 33 tmcft/day from the Polavaram reservoir by the PHES units located in semi open or underground power houses.

The upper reservoir can be further expanded by 3.5 km length on its south side to enhance the live / buffer storage substantially.

[53] The power potential doubles in case of pumping operation for six hours in a day for the same water storage.

The winning tariffs are Rs 2.50 per unit which are at least 25% more than the earlier awarded tariffs of Rs 2 per unit in November 2020 even after reducing scope of work (no HV transmission line construction outside the solar park), state providing the land on lease, giving state guarantee for the timely payment for the power sold, allowing the state guarantee as security to get financial assistance at lower interest rates, disregarding higher solar power potential at these sites compared to Western and northern regions, etc.

It represents that there is at least one HT or LT line availability on average within the vicinity of 306 meters in the entire state area.

[72] Huge installed capacity of the transmission network and the substations are being underutilized with low demand factor.

[125][126] It serves Guntur, Bapatla, Palnadu, Krishna, NTR, Prakasam districts, an area of 56868 square kilometres, in Andhra Pradesh state.