Archive · 8 Aug 2026
Andhra Pradesh to Procure 1,600 MW Thermal Power via Bidding
Andhra Pradesh is a state in India that needs more electricity.
The people and factories there use a lot of power, especially in the evening.
So the state government decided to buy electricity from new coal power plants.
Coal power plants can make electricity any time, day or night, even when the sun isn't shining and the wind isn't blowing.
The state wants to buy 1,600 megawatts of this kind of power.
A megawatt is a measure of how much electricity a power plant can make.
To get a fair price, the state will hold a contest called competitive bidding, where companies say how much they will charge and the best offer wins.
A group called APERC said yes to starting the contest on August 6.
The companies that win will build and run the power plants and sell the electricity to the state for many years.
This extra power will help keep the lights on when renewable energy is low.
Andhra Pradesh will procure 1,600 MW of coal-based thermal power through a competitive bidding process.
The Andhra Pradesh Electricity Regulatory Commission (APERC) granted in-principle approval on August 6.
Procurement will be done through Tariff-Based Competitive Bidding under Section 63 of the Electricity Act, 2003, on the DBFOO model.
The 1,600 MW is the first phase of a plan requiring about 5,588 MW of additional coal-based thermal capacity by 2035-36.
APERC directed distribution companies to reject non-competitive bids and prefer projects connected to the AP State Transmission Network.
- Who
- Andhra Pradesh's power distribution companies, with in-principle approval from the Andhra Pradesh Electricity Regulatory Commission (APERC); the process followed a review meeting chaired by Chief Minister N Chandrababu Naidu and approval by the Andhra Pradesh Power Coordination Committee (APPCC).
- What
- Procurement of 1,600 MW of coal-based thermal power through tariff-based competitive bidding under the Design, Build, Finance, Own and Operate (DBFOO) model.
- When
- APERC granted in-principle approval on August 6; the Chief Minister's review meeting was held on April 27 and the APPCC approved the proposal on June 11.
- Where
- Andhra Pradesh, India; the announcement was datelined from Amaravati.
- Why
- To meet rising electricity demand, strengthen long-term energy security, and provide firm, dispatchable power during evening peaks and periods when wind and solar generation is low.
- Power to be procured
- 1,600 MW of coal-based thermal power
- Procurement model
- Design, Build, Finance, Own and Operate (DBFOO)
- Bidding framework
- Tariff-Based Competitive Bidding under Section 63 of the Electricity Act, 2003
- Regulatory approval
- In-principle approval by APERC on August 6
- Additional capacity needed by 2035-36
- Around 5,588 MW per the Central Electricity Authority's Resource Adequacy Plan
- Bidding documents
- Standard RfQ, RfP and PSA documents notified by the Union Ministry of Power
- APPCC approval
- June 11
