The central government has approved the expansion of the power transmission network in Andhra Pradesh with an investment of ₹27,370 crore under the Green Energy Corridor Phase-III scheme, and the first phase of the project is expected to be commissioned in 2029-30, a government source told Business Standard.
This comes after the Union Cabinet’s approval of the ₹1.86 trillion Green Energy Corridor Phase-III (GEC-III) scheme on September 30 to evacuate up to 135 gigawatts (GW) of renewable energy through state transmission networks by 2032-33. Of the total outlay, around ₹1.36 trillion is for intra-state transmission (InSTS) and ₹50,000 crore for 50 gigawatt-hours (GWh) of battery energy storage systems (BESS). The Centre is providing financial support of ₹54,082 crore to offset intra-state transmission charges.
The project, proposed by the Transmission Corporation of Andhra Pradesh (APTRANSCO), plans the construction of 7,872 circuit kilometres (ckm) of 400 kV and 220 kV transmission lines and 9,500 megavolt-amperes (MVA) of substation capacity, including five new 400/220 kV substations.
The state’s proposal includes greenfield transmission infrastructure. The planned infrastructure includes key pooling stations at Mudigubba and Talupula, each with a capacity of 5 GW, and Porumamilla, with a capacity of 1 GW. New 400 kV substations are also proposed at Ramayapatnam and Koppaka.
Though the national GEC-III scheme received Cabinet approval last month, the Andhra Pradesh component was pending clearances. The current clearance may ensure that the initial phase of the project is commissioned by 2029-30, said a source.
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The renewable energy zones identified for evacuation include Roddam-Penukonda, Gorantla, OD Cheruvu-Amadaguru and Kondikonda in Anantapur and Sri Sathya Sai districts, and Rajupalem in Prakasam district.
"The central assistance will lower intra-state transmission charges and discom power purchase costs, and it also supports the AP Integrated Clean Energy Policy 2024," he added. The project is crucial for the state, as a Central Electricity Authority (CEA) estimate expects Andhra Pradesh's peak demand to rise from 15,600 MW in 2025-26 to 30,927 MW by 2035-36. Without new renewable energy capacity and evacuation infrastructure, unserved energy will reach 19.4 per cent by 2035-36.
Andhra Pradesh has a mixed renewable energy (RE) potential of 237 GW, and renewable energy sources account for 51 per cent (16 GW) of the state's total installed capacity, according to NITI Aayog. Of this, 7.5 GW came from solar, 4.4 GW from wind, and the remaining 4.07 GW from hydro and biomass as of March 2026.
The state's clean energy policy is targeting the installation of 78.5 GW of solar and 35 GW of wind capacity between 2024 and 2029. It also targets 25 GWh of battery energy storage systems (BESS) and 22 GW of pumped storage hydropower. In addition to this, it is working on a green hydrogen production capacity of 1.5 million tonnes per annum (MTPA).