VIJAYAWADA: Chief Minister N Chandrababu Naidu on Tuesday instructed officials to focus on reducing power purchase costs and bring the unit charge below the existing Rs 4. He also asked them to prepare an action plan to enable power utilities to clear debts without burdening consumers.
Chairing a review meeting of the Energy Department at the Secretariat, the Chief Minister emphasised bringing down the power purchase cost to Rs 4 per unit. Officials informed him that, through ongoing reforms, the cost could be reduced by Rs 1.32 per unit, with a target of reaching Rs 4.10 per unit by 2028-29.
He stressed the need for a comprehensive plan to clear the debts of power utilities without increasing tariffs. Highlighting efficiency improvements, officials said better management has already resulted in savings of Rs 339 crore in the 2025-26 financial year.
The Chief Minister called for adopting new technologies and innovations to enhance energy efficiency and reduce costs. He noted that Andhra Pradesh has been a pioneer in power sector reforms, including early adoption of energy auditing.
Referring to global trends, he said the energy sector is rapidly shifting towards green and cost-effective power generation, and Andhra Pradesh is well placed to leverage these changes. He added that the State’s focus on renewable energy has attracted major investments, including data centres by global firms like Google.
Naidu directed officials to expand rooftop solar adoption and make central schemes like PM Surya Ghar Yojana more accessible. He also called for greater awareness among farmers on using the PM Kusum scheme for agricultural pump sets.
He stressed integrating renewable sources such as solar, wind, pumped storage projects and battery energy storage systems to build a robust energy ecosystem. He said AP should aim to secure the top position in solar power nationally.
The Chief Minister proposed establishing an Energy University to promote research and innovation, and strengthening the Centre of Excellence for Energy Transition. He also suggested setting up an incubation fund to support start-ups in the energy sector, with utilities providing financial assistance.
He added that power utilities should aim to grow into institutions offering consultancy services to other States. He noted that the government has avoided passing on true-up charges and achieved a tariff reduction of 13 paise per unit.
Energy Minister Gottipati Ravi Kumar and senior officials were present.