
The Andhra Pradesh Electricity Regulatory Commission has given in-principle approval to procure 1,600 MW of coal-based thermal power through tariff-based competitive bidding. The move follows rising electricity demand and the Central Electricity…
The Andhra Pradesh Electricity Regulatory Commission has given in-principle approval to procure 1,600 MW of coal-based thermal power through tariff-based competitive bidding. The move follows rising electricity demand and the Central Electricity Authority's Resource Adequacy Plan, which recommends adding about 5,588 MW of coal-based capacity by 2035-36.
State DISCOMs will invite bids under Section 63 of the Electricity Act, 2003, using the Design, Build, Finance, Own and Operate model. Chief Minister N. Chandrababu Naidu chaired a review meeting on April 27, 2026 that initiated the process. The power is meant to provide firm supply during peak demand and when renewable generation is low, the government release said.
There is a familiar hype around this as a bold fix for Andhra Pradesh's power gap. But coal-based capacity of 1,600 MW against a projected 5,588 MW by 2035-36 still leaves much to chance. The real test is whether competitive bidding delivers cheaper tariffs than past state-run deals, and how the DISCOMs balance this with growing renewable obligations. Consumers will watch the final per-unit cost when bids open.
Source: thehindu.com
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