The Government of Andhra Pradesh was one of the pioneer states to initiate the power sector reforms in 1998. The erstwhile Andhra Pradesh State Electricity Board (APSEB) was unbundled into six entities to focus on the core operation of Power Generation (APGENCO), Power Transmission (APTRANSCO) and Distribution (APDISCOMS). Significant amount of investments were made for building up generation capacity, strengthening transmission and distribution network, industrial feeder segregation, loss reduction and improving quality of power supply.

As of 2014, the total generation capacity of Andhra Pradesh is 8,307 MW as per power allocation. Existing renewable capacity is about 1,397 MW (Wind - 777 MW, Solar - 77 MW, Others - 543 MW).

Present Status

As of December 2017, Andhra Pradesh had a total installed power generation capacity of 22,257.10 MW. Out of the 22,257.10 MW, state utilities contributed 6,367.75 MW, private utilities contributed 13,904.48 MW & central utilities contributed 1,984.87 MW. With a contribution of 13,857.80 MW, thermal power accounted for the highest share of the overall installed power generation capacity of the state, followed by renewable energy with a contribution of 6,598.43 MW.

The state has 10 hydro power projects under operation & 2 under construction. Additionally, the state has 1 operational wind power project. World’s largest single-location solar park is located in Kurnool district. The project entailed an investment of Rs 7,000 crore (US$ 1.08 billion) and is now fully operational.

In budget 2017-18, the state government announced plans to invest Rs 4,311 crore (US$ 669.13 million) for the development of the energy sector in the state.

The government had approved setting up of 6 light-water nuclear reactors in the state in 2016. The nuclear reactors will be set up in Kovvada and will have a capacity of 1,208 MW each. As of January 2018, discussions with Westinghouse Electric Company are in progress to arrive at a viable proposal.

During 2015-16, the aggregate technical & commercial losses declined to 10.29% as compared to 11.81% in 2014-15.

Additionally, during the same period, the state government supplemented an additional capacity of 2,290 MW of power in the state. The state government is targeting development of an additional capacity of 4,800 MW within the coming 3 years.