Andhra Pradesh approves 1,600 MW thermal procurement

India — Andhra Pradesh has initiated the procurement of 1,600 MW of coal-based thermal power through tariff-based competitive bidding under Section 63 of the Electricity Act, 2003, using the Design, Build, Finance, Own and Operate (DBFOO) model. The India — State electricity regulatory commission (India) (APERC) granted in-principle approval on August 6, 2026, following a review meeting chaired by Chief Minister N. Chandrababu Naidu on April 27 and approval by the India — Andhra Pradesh Power Coordination Committee on June 11. This procurement is the first phase of a larger thermal capacity addition programme, with the India — Central Electricity Authority's Resource Adequacy Plan recommending approximately 5,588 MW of additional coal-based generation capacity by FY 2035-36. The new capacity aims to provide firm, dispatchable power to support industrial growth, urbanization, and complement renewable energy during peak demand and low solar/wind periods. APERC clarified that its approval is limited to initiating the bidding process and does not constitute approval of final tariffs or power supply agreements; distribution companies must submit bid evaluation reports and discovered tariffs for regulatory scrutiny, and reject bids if tariffs are uncompetitive. The regulator also advised preference for projects connected to the India — Andhra Pradesh State Transmission Network, while allowing inter-State projects if landed costs are lower. The India — Andhra Pradesh Power Procurement Cell is expected to issue bidding documents shortly.