Andhra Pradesh has received approval for a Rs 27,370 crore investment to expand its power transmission network. The project will strengthen the state's green energy infrastructure and improve its ability to transmit renewable electricity.
The first phase is expected to be commissioned in 2029-30. The approval comes under the central government's Green Energy Corridor Phase-III (GEC-III) scheme.
The Union Cabinet approved the Rs 1.86 trillion national scheme on September 30 to support the evacuation of up to 135 GW of renewable energy through state transmission networks by 2032-33.
Of the total outlay, around Rs 1.36 trillion is allocated to intra-state transmission infrastructure, while Rs 50,000 crore is earmarked for 50 GWh of battery energy storage systems (BESS). The Centre will provide Rs 54,082 crore in financial assistance to offset intra-state transmission charges.
Proposed by the Transmission Corporation of Andhra Pradesh (APTRANSCO), the project includes the construction of 7,872 circuit kilometers of 400 kV and 220 kV transmission lines. It will also add 9,500 MVA of substation capacity, including five new 400/220 kV substations.
The planned greenfield infrastructure includes key pooling stations at:
New 400 kV substations are also proposed at Ramayapatnam and Koppaka.
The renewable energy zones identified for power evacuation include Roddam-Penukonda, Gorantla, OD Cheruvu-Amadaguru and Kondikonda in Anantapur and Sri Sathya Sai districts. Rajupalem in Prakasam district is also part of the plan.
Although the national GEC-III scheme received Cabinet approval in September, the Andhra Pradesh component was awaiting clearances. The latest approval is expected to help the state commission the project's initial phase by 2029-30.
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The transmission expansion is important as Andhra Pradesh prepares for a sharp rise in electricity demand. According to a Central Electricity Authority (CEA) estimate, the state's peak power demand could increase from 15,600 MW in 2025-26 to 30,927 MW by 2035-36.
Without additional renewable energy capacity and transmission infrastructure, unserved energy could reach 19.4% of demand by 2035-36.
The Centre's financial assistance is expected to reduce intra-state transmission charges and distribution companies' power purchase costs. The project also supports the Andhra Pradesh Integrated Clean Energy Policy 2024.
According to NITI Aayog, Andhra Pradesh has a renewable energy potential of 237 GW. Renewable sources accounted for 51% of the state's total installed power capacity, or around 16 GW, as of March 2026. This included 7.5 GW of solar power, 4.4 GW of wind power and 4.07 GW from hydro and biomass.
Under its clean energy policy, the state aims to install 78.5 GW of solar capacity and 35 GW of wind capacity between 2024 and 2029. It also targets 25 GWh of battery storage, 22 GW of pumped storage hydropower and 1.5 million tonnes per annum of green hydrogen production capacity.
The Rs 27,370 crore project will help strengthen Andhra Pradesh's green energy transmission infrastructure, supporting its renewable energy ambitions while preparing the state for higher electricity demand.
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