Andhra Pradesh Chief Minister N. Chandrababu Naidu on Thursday, 13 August directed state officials to assess the feasibility of establishing Pumped Storage Energy Projects at 130 reservoirs across the state, signalling an ambitious push to future-proof the state's power infrastructure. The directive came during a high-level review meeting on the functioning of the Energy Department in Amaravati.

The Polavaram Trigger

The proposal to study pumped storage potential at 130 sites emerged from a discussion on establishing such a project at the Polavaram reservoir. Naidu broadened the scope, asking officials to conduct a detailed economic feasibility analysis across all identified reservoirs rather than limiting the initiative to a single site.

He also flagged concerns about deficient rainfall this year and the risk it poses to conventional hydropower generation, directing officials to put advance contingency measures in place to ensure uninterrupted power supply.

Electricity Demand and Capacity Planning

At the review, the Chief Minister noted that industrialisation in Andhra Pradesh was accelerating and projected that electricity consumption in the state would double every six years. He asked officials to prepare comprehensive capacity expansion plans aligned with this trajectory and to simultaneously work on reducing power distribution losses.

Naidu set a clear cost target: bring the average power purchase cost down to ₹4.60 per unit in the current year and further to ₹4 per unit by 2029. Officials informed him that optimisation of power purchases had already yielded savings of ₹234 crore, with an additional ₹100 crore saved through prompt payment rebates.

Solar Push and Central Scheme Targets

The Chief Minister pushed hard on solar expansion, asking officials to install six lakh solar connections under the PM Surya Ghar scheme by September and an additional three lakh connections under the non-Surya Ghar category at the earliest. He also directed officials to apply to the Centre for a further 10 lakh connections.

On the PM-KUSUM scheme, Naidu said Andhra Pradesh should complete its existing target while simultaneously seeking an additional 2,000 MW of solar capacity from the Centre. He called for integrating solar, wind, and pumped storage resources into a unified system capable of delivering reliable power at lower cost.

Performance Framework for Power Utilities

Naidu proposed introducing a performance-based rating system for the state's six power utilities, with clear targets set for each and an expectation that they develop the competitiveness of leading corporate organisations. The move is aimed at improving accountability and operational efficiency across the power distribution chain.

With pumped storage projects capable of acting as large-scale energy batteries — storing surplus renewable power and releasing it during peak demand — the feasibility study could shape Andhra Pradesh's energy mix for the next decade.