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Inside NITI Aayog’s Plan to Build Andhra Pradesh into One of India’s Top 3 Renewable Energy States

NITI Aayog, under its ASSET platform, has prepared a detailed Andhra Pradesh renewable energy transition blueprint to transform the state into a leading renewable energy hub by 2035 with massive capacity targets.
Andhra Pradesh Renewable Energy Transition Blueprint
Indian Masterminds Stories

Hyderabad: The Andhra Pradesh renewable energy transition blueprint is a landmark energy strategy drafted by NITI Aayog to transform the southern Indian state into one of the top three renewable energy hubs in India by 2035. This ambitious plan aims to ensure clean, affordable, and reliable power for households, farmers and industries, while establishing Andhra Pradesh as a major renewable energy export hub. 

The blueprint has been prepared under the ASSET (Accelerating Sustainable State Energy Transition) platform and reflects the state’s long-term sustainable development mission.

What Is the Andhra Pradesh Renewable Energy Transition Blueprint?

The Energy Transition Blueprint is a comprehensive long-term strategy prepared by NITI Aayog in collaboration with the Government of Andhra Pradesh. Its core objective is to shift the state’s power ecosystem toward renewable sources while strengthening energy reliability and affordability.

Read also: NITI Aayog Launches Water Budgeting Report to Boost Local Water Security and Climate Resilience

Drafted under the ASSET platform, the blueprint outlines policy frameworks, investment needs, and capacity targets that aim to create sustainable market conditions for clean energy deployment through 2035.

Key Targets Under Andhra Pradesh Renewable Energy Transition Blueprint 

The blueprint sets ambitious renewable energy goals for Andhra Pradesh’s future power mix:

Domestic Power Generation Goals

  • 35 GW of solar power
  • 12 GW of wind energy
  • 55–60 GWh of energy storage capacity

These initiatives aim to address the state’s internal energy demand efficiently and sustainably.

Export-Oriented Renewable Projects

In addition to domestic needs, Andhra Pradesh plans to develop:

  • 30 GW of export-oriented solar capacity
  • 25–30 GW of wind power
  • 10–12 GW of pumped storage capacity

These large-scale projects are expected to position the state as a major renewable energy export supplier across India.

Investment Requirements and Job Creation

The energy transition blueprint estimates that Andhra Pradesh will need approximately ₹7.5 lakh crore in total investments by 2035:

Domestic renewable capacity & transition: ₹3.3–3.4 lakh crore

Renewable export hub infrastructure: ₹4–4.2 lakh crore

About 90% of these funds are expected from private sector participation. The plan also aims to generate 5–6 lakh new jobs, boosting economic growth and industrial activity.

Andhra Pradesh Renewable Energy Transition Blueprint: Benefits to Consumers and Costs

NITI Aayog projects that renewable capacities in Andhra Pradesh could reduce power procurement costs significantly:

  • Power purchase cost: ₹3.90–₹4 per unit
  • Overall electricity supply cost: Below ₹6 per unit

Such cost savings are poised to benefit rural consumers, farmers and commercial industry sectors over the long term.

Infrastructure Modernisation Plans

To support renewable integration and export readiness, the blueprint identifies substantial investments in grid and network modernisation:

Transmission Sector

  • ₹65,000–70,000 crore for modern transmission including:
    • Green corridors
    • GIS substations
    • High Voltage Direct Current (HVDC) corridors

Distribution Networks

  • ₹40,000 crore to strengthen and improve distribution reliability

These upgrades aim to reduce power losses, enhance efficiency and improve the overall grid resilience.

Alignment with State Vision & Implementation Timeline

The blueprint is designed to complement Andhra Pradesh’s Swarna Andhra Vision — the state’s roadmap for industrial and economic transformation.

The draft is set to be finalised by March 2026 and presented to a Central Steering Committee, with implementation expected to start soon after. Officials have also proposed an ‘Energy War Room’ to monitor and track progress through high-level reviews.

Read also: NITI Aayog Launches 3 Reports on Enhancing Circular Economy for ELVs, Waste Tyres, E-Waste and Lithium-ion Batteries


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