- Andhra Pradesh proposes a ₹28,436 crore green energy corridor to connect 18,000 MW of renewable and pumped storage power to the grid by 2029.
- The project aims to solve power evacuation issues and enable new green energy projects amid stalled land use.
Andhra Pradesh Chief Minister N Chandrababu Naidu has unveiled plans for a ₹28,436 crore green energy corridor to link renewable energy projects to the central grid. This marks a significant step towards the state’s ambitious goal of producing 72 GW of green energy by 2029.
The proposed corridor will feature an extensive transmission network and central substations. Engineers have designed the corridor to evacuate 11,000 MW of renewable power and 7,000 MW from pumped storage projects. This infrastructure will support India’s broader renewable energy capacity expansion.
The state currently faces two key challenges. Most renewable generation and pumped storage potential lie in the Rayalaseema region, while demand and load growth occur primarily in the coastal areas, where green hydrogen hubs, data centres, and industries are emerging. The new corridor aims to efficiently connect these power-rich regions to high-demand zones.
In addition, the government is grappling with stalled projects. Developers allotted prime renewable sites near substations under previous administrations have yet to commence work, effectively blocking fresh capacity additions. Over 16,500 MW of renewable capacity on more than 21 lakh acres in Rayalaseema remains unused.
The government proposes an Extra-High-Tension (EHT) transmission network to address these issues, integrate energy resources, and ensure smooth power evacuation to coastal load centres. Following a request from the Central Electricity Authority in December 2024, Andhra Pradesh swiftly completed system studies and devised a comprehensive network plan within ten days. The proposal is now awaiting approval from the central government.
The funding model will mirror other green energy corridors. 40% of costs will be covered by the Ministry of New and Renewable Energy, 40% through loans, and 20% equity from the Power Grid Corporation of India. The corridor will also facilitate connections from renewable projects in Rajasthan and Gujarat.
A senior government official told the Economic Times that while the state is reluctant to cancel existing land allotments to avoid litigation, it actively pushes developers to deliver results. The green energy corridor will help unblock grid access, enabling new projects to come online and boosting renewable integration.
Officials will soon present the project to the Union Cabinet, reinforcing Andhra Pradesh’s commitment to becoming a key player in India’s clean energy transition.