CM Naidu Tells AP Power Utilities: Avoid Tariff Hikes, Boost Renewable Energy

Andhra Pradesh Chief Minister N. Chandrababu Naidu has directed the State’s power utilities to avoid burdening consumers with higher tariffs and instead tap into alternative non-tariff revenue sources.

Speaking at a review meeting at his camp office on Wednesday, Naidu suggested leasing AP-Transco’s fibre optic network, which he said could fetch nearly Rs 7,000 crore in revenue. He also called for reducing power purchases from the open market and bringing down Transmission and Distribution (T&D) losses from the current 9%.

“T&D losses can be minimised through effective feeder management,” he said, noting that with power consumption projected to rise by 8.90% over the next two to three years, renewable energy (RE) generation must be stepped up.

Naidu urged the formulation of short, medium, and long-term strategies to transform Andhra Pradesh into a “Green Energy Hub” in line with global trends. He emphasised reducing RE production costs and improving power generation, supply, and distribution through effective auditing.

Officials briefed the Chief Minister that the State’s power consumption reached 270 million units (MU) in March–April 2025 and that demand could peak at 12,700 MW between September 2025 and March 2026. Mr. Naidu suggested power swapping to reduce dependence on costly market purchases.

Highlighting the cost gap between thermal power (Rs5–Rs 6 per unit) and wind power (Rs 4.60 per unit), Mr. Naidu said Andhra Pradesh has the potential to generate 65 gigawatts of wind energy and significant pumped hydropower in Rayalaseema. Since June 2024, RE projects worth Rs 3.19 lakh crore have been initiated in the State, officials added.

The Chief Minister instructed that smart meters should not be installed in the agriculture sector and that all citizen services of power utilities be made available via the WhatsApp-based ‘Mana Mitra’ platform. He also advised seeking Central assistance for coal procurement for AP-Genco’s thermal units.

Energy Minister Gottipati Ravikumar, Chief Secretary and Special CS (Energy) K. Vijayanand, and senior officials from AP-Genco and AP-Transco attended the meeting.