Andhra Pradesh Plans INR 28,436 Crore Green Energy Corridor to Boost RE Push

In a bold push toward renewable energy leadership, Andhra Pradesh Chief Minister N. Chandrababu Naidu has announced a INR 28,436-crore green energy corridor aimed at integrating the state’s upcoming renewable energy projects with the national grid. The move supports Andhra Pradesh’s target of generating 72 GW of green energy by 2029.

The proposed corridor includes transmission lines and central substations to evacuate 11,000 MW fom renewable sources and another 7,000 MW from pumped storage projects. This major infrastructure step is expected to significantly support India's renewable energy ambitions.

However, the plan faces key logistical and developmental challenges. While most of the state’s renewable and pumped storage capacity is concentrated in Rayalaseema, demand is rapidly growing in coastal areas, which is home to green hydrogen hubs, data centres, and energy-intensive industries. Additionally, several developers previously allotted sites in Rayalaseema have yet to begin construction, blocking new capacity allocation.

To bridge this gap, the state has proposed a dedicated Extra High Tension (EHT) transmission network connecting Rayalaseema’s generation zones with coastal demand centres. Acting swiftly on a Central Electricity Authority directive issued on December 17, 2024, Andhra Pradesh submitted a detailed network plan within just ten days. The proposal is currently under review by the central government.

The project will follow the standard green corridor funding model, 40 percent  central government grant via the Ministry of New and Renewable Energy, 40 percent loan financing, and 20 percent equity contribution from Power Grid Corporation of India.

Other renewable-rich states, including Rajasthan and Gujarat, are also expected to connect their green projects to this evolving national corridor.