VIJAYAWADA: Directing energy officials to formulate comprehensive strategies to expand generation capacity alongside surging demand, Chief Minister N Chandrababu Naidu on Thursday instructed the power sector to focus on cost-cutting measures, renewable energy integration, and feasibility studies for pumped storage projects across the State.
Reviewing the performance of the energy department at the Secretariat, the CM instructed officials to conduct feasibility and economic viability studies on establishing Pumped Storage Energy Projects across 130 reservoirs in AP, specifically noting a proposal at Polavaram.
Pointing out that low rainfall this year could impact hydroelectric generation, Naidu underscored the need for proactive measures to ensure uninterrupted supply. With industrialisation accelerating power consumption—which doubles every six years—he directed the department to draft long-term capacity-building plans while aggressively minimising distribution losses.
To drive down power purchase costs, the CM set explicit targets to reduce the average procurement price to Rs 4.60 per unit this year and further down to Rs 4.00 per unit by 2029. He called for an integrated energy model combining solar, wind, pumped storage, power swapping, and central schemes. Under the PM Surya Ghar scheme, he instructed officials to expedite the installation of 6 lakh solar connections by September, complete another 3 lakh non-Surya Ghar connections, and apply for 10 lakh additional connections. Furthermore, under the PM-KUSUM scheme, he directed the department to fulfil current targets and request the Central Government for an additional 2,000 MW capacity allocation.
To ensure financial discipline, the Chief Minister introduced a performance-based rating system for the state’s six power utilities, urging them to operate at corporate standards. Officials briefed Naidu that optimisation in power purchases had yielded savings of Rs 234 crore, alongside an additional Rs 100 crore saved through prompt payment rebates.
Welcoming the savings, Naidu mandated that power utilities restrict future borrowings strictly to capital investments and asset creation, instructing officials to renegotiate existing debt with financial institutions for lower interest rates rather than resorting to tariff hikes.
The Chief Minister also commended officials for implementing modern technological frameworks, including ‘Digital Twin’ asset monitoring and the ‘Asset Health Index.’ He noted that predictive maintenance of transformers and critical electrical equipment will reduce operational expenditure while ensuring uninterrupted, high-quality power delivery for consumers. The review meeting was attended by Energy Minister Gottipati Ravi Kumar and senior department officials.