Cut power purchase cost to Rs 4.6 per unit, focus on renewable energy: Andhra CM tells officials

Andhra Pradesh Chief Minister N Chandrababu Naidu on Monday directed officials to reduce power purchase cost to Rs 4.6 per unit while accelerating renewable energy generation and adopting technology-driven reforms in the sector. Reviewing the Energy Department, the Chief Minister stressed sustained efforts to bring down power costs and improve efficiency through innovation and research. ''Power purchase cost must be reduced to Rs 4.60 per unit by year-end. Officials should study global best practices and ensure reforms benefit the public through effective use of technology,'' said Naidu in an official press release. Officials informed the CM that power purchase cost has been reduced from Rs 5.2 per unit in April 2025 to Rs 4.9 per unit by March 2026. They added that summer power demand is estimated between 275 to 285 million units daily, with total consumption reaching 6,397 million units so far this month, marking a 14 percent increase compared to last year. Naidu emphasised expanding renewable energy capacity, saying more than half of the state's power generation should come from green sources by 2028–29. According to officials, schemes such as PM Surya Ghar and Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) are being implemented, with 52,396 rooftop solar connections and 2.94 lakh agricultural connections provided so far. The Chief Minister directed officials to scale up implementation, targeting two lakh rooftop solar connections per month and completing the first phase of PM KUSUM by December. Further, Naidu proposed setting up an Energy University to promote research and innovation in the power sector and called for utilisation of CSR funds from power utilities like Transco and Genco. He also stressed the need for conducting a comprehensive study on pumped storage projects and expanding environmentally friendly power generation to reduce pollution. Naidu also urged officials to strengthen EV charging infrastructure across the state and create widespread public awareness on electric vehicles.

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