Andhra Pradesh Powers Ahead with Solar-Led Energy Growth

Andhra Pradesh is steadily positioning itself as a key player in India’s renewable energy transition, with particular emphasis on solar energy development. The state’s strategy is guided by a combination of enabling policies, infrastructural expansion, and large-scale project execution, aligning with the national goal of achieving 500 GW of non-fossil fuel-based power capacity by 2030.

A cornerstone of this strategy is the Renewable Energy Export Policy, 2020, officially notified by the Government of Andhra Pradesh. This policy is designed to facilitate the development of renewable energy projects specifically for export to other states, without any obligation to supply to local DISCOMs. Under this framework, the state has earmarked up to 5 lakh acres of land to be leased for 30 years for setting up solar, wind, and hybrid energy projects. The New & Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) is the designated nodal agency overseeing implementation.

In terms of project development, Andhra Pradesh is progressing on several major initiatives. These include the Kadapa Ultra Mega Solar Park with a proposed capacity of 1,000 MW, a 300 MW solar-wind hybrid park at Ramagiri, and a 2,700 MW solar cluster spread across Prakasam and Sri Sathya Sai districts. Additionally, the state is host to a large integrated renewable energy storage project with a planned capacity of 5,230 MW, of which 3,000 MW will come from solar power alone. These projects are being developed in coordination with central and state agencies, supported by clearances and infrastructure facilitation.

While Andhra Pradesh has made significant progress in utility-scale solar development, it has not participated in the central government’s PM-KUSUM scheme over the past five years. This has resulted in the state missing the opportunity to benefit from centrally supported solar pump installations for agricultural use. The Union Minister of State for New and Renewable Energy confirmed that no proposals were received from the state under this scheme.

Nonetheless, the state has been active in promoting rooftop solar adoption. Under the PM Surya Ghar: Muft Bijli Yojana, more than 70,000 households have applied for rooftop installations, with nearly 5,000 already completed as of late 2024. A pilot in the Kuppam constituency aims to solarize over 50,000 households. Solar panel installations are also being expanded across government buildings, targeting 150 MW capacity by 2025–26.

Through such initiatives, Andhra Pradesh is emerging as a solar hub, driven by policy clarity and a focus on long-term renewable energy development.