State set to become top renewable energy hub by 2035

NITI Aayog has drawn up a comprehensive energy transition blueprint to transform Andhra Pradesh into one of India’s top three renewable energy hubs, with a strong focus on reliable, affordable, and clean power for all consumers. NITI Aayog CEO B V R Subrahmanyam on Thursday met chief secretary K Vijayanand at the Secretariat and handed over the draft blueprint for the state.

Prepared under the ASSET (Accelerating Sustainable State Energy Transition) platform in partnership with the Andhra Pradesh government, the plan aligns with the state’s ‘Swarna Andhra Vision’ and long-term industrial development goals. It aims to reshape the power sector by 2035 with an emphasis on sustainability, efficiency, and large-scale clean energy adoption.

At present, renewable sources account for about 47 per cent of Andhra Pradesh’s total installed power capacity. Under the blueprint, the state plans to develop 35 GW of solar power, 12 GW of wind power, and 55–60 GWh of energy storage capacity by 2035 to meet its internal demand. In addition, projects aimed at national-level power exports include 30 GW of solar, 25–30 GW of wind, and 10–12 GW of pumped storage capacity.

NITI Aayog estimates that power procurement costs could decline to Rs 3.90– Rs 4 per unit by 2035, with the overall supply cost targeted to be kept below Rs 6 per unit. Officials said this would significantly benefit households, farmers, and industries.

The energy transition within the state is expected to require investments of Rs 3.3–3.4 lakh crore, while the development of a national renewable energy export hub could attract an additional Rs 4–4.2 lakh crore. Nearly 90 per cent of this investment is projected to come from the private sector, potentially creating 5–6 lakh jobs in Andhra Pradesh.

As part of infrastructure upgrades, investments of Rs 65,000–70,000 crore are proposed in the transmission sector by 2035, including green energy corridors, GIS substations, and HVDC corridors.

The distribution sector will see Rs 40,000 crore in investments to strengthen networks, reduce losses, and improve reliability. The blueprint also prioritises distributed solar projects in agriculture to ensure daytime power supply and reduce subsidy burdens.

The blueprint is expected to be finalised by early March 2026 and submitted to a central steering committee under NITI Aayog, with implementation likely to begin by mid-March. A dedicated energy war room will monitor progress, supported by regular high-level reviews.

The meeting was attended by senior officials from NITI Aayog, state power

utilities, and renewable

energy agencies.