Vijayawada: Andhra Pradesh is moving at a rapid pace towards green hydrogen and clean energy adoption, with a clear focus on reducing fuel and electricity costs through large-scale renewable energy projects, chief secretary K Vijayanand said while addressing a meeting of district collectors on Thursday.
The chief secretary said the state government was pursuing cost optimisation in fuel and energy by gradually transitioning away from fossil fuels such as diesel and petrol. He noted that the completion of several ongoing energy projects would enable the supply of multiple fuel and energy options to consumers at more affordable prices. Referring to the PM-KUSUM scheme, Vijayanand said fuel and power prices were expected to ease once the projects under implementation reached completion. He said the State’s broader objective was to move decisively towards green energy by leveraging all available power sources, including solar, wind and pumped hydro, while progressing towards net-zero emissions. The strategy also aims to ensure affordable and reliable power supply to farmers, industries and households, and achieve local-level energy self-sufficiency through smart grids, microgrids and rooftop solar programmes. Under PM-KUSUM, works have been allocated for a capacity of 1,162.80 MW, covering 2,93,587 agricultural pumps to provide farmers with nine hours of free daytime electricity through feeder solarisation. In addition, rooftop solar works of 1,198.21 MWp have been allocated for 20.5 lakh SC and ST consumers, with an average system size of about 2 kW. The procurement process has also been initiated for 27.59 lakh BC consumers with similar rooftop systems. The chief secretary said rooftop solar installations were also being planned for government buildings such as schools, colleges, hospitals and offices, with an estimated potential capacity of around 150 MW. He further informed that a 1.5 GW / 3 GWh Battery Energy Storage System (BESS), connected to the intra-state transmission system, had been established under viability gap funding.
Vijayanand said these initiatives were projected to yield electricity purchase cost savings ranging from Rs 957 crore to Rs 2,368 crore over the next three years, potentially translating into tariff reductions of about Rs 4,635 crore over three financial years at 2026 price levels. The average power purchase cost is expected to decline from Rs 4.80 per unit in 2026 to Rs 3.99 per unit by 2029.
He urged district collectors to closely review and monitor rooftop solar installations, expedite land allocation for PM-KUSUM feeder-level solarisation projects, and ensure timely execution of Battery Energy Storage Systems.
