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Andhra Pradesh Plans Rs28,400 Crore Green Energy Corridor to Boost Renewable Integration

May 28, 2025

Andhra Pradesh Chief Minister N Chandrababu Naidu has proposed an ambitious Rs28,436 crore green energy corridor to connect renewable energy projects to the central grid. This infrastructure initiative aims to facilitate the evacuation of 11,000 MW from renewable sources and 7,000 MW from pumped storage projects, supporting the state’s target to produce 72 GW of green energy by 2029.

The corridor will involve building high-tension transmission lines and central substations to address two major challenges faced by Andhra Pradesh: the geographical concentration of renewable and pumped storage projects in Rayalaseema versus major load centers in coastal areas, and delays in project commencement by developers holding land near substations, blocking fresh capacity additions.

The comprehensive network plan was developed quickly after the Central Electricity Authority’s December 2024 directive, and is now under consideration by the central government. The funding model follows typical green corridor projects with 40% cost support from the Ministry of New and Renewable Energy, 40% financed by loans, and 20% equity investment by Power Grid Corporation of India. The corridor will also interlink with projects in Rajasthan and Gujarat, enhancing interstate renewable power transmission.

This infrastructure push is critical to overcoming bottlenecks in renewable energy development and ensuring efficient power evacuation to meet India’s growing clean energy goals.