AP CM Sets Target to Slash Power Purchase Cost to ₹4.60 Per Unit

The Andhra Pradesh government has stepped up efforts to reduce electricity costs and accelerate its clean energy transition. Chief Minister N. Chandrababu Naidu has directed officials to bring down the power procurement cost from the current ₹4.90 per unit to ₹4.60 by the end of this year, aiming to ease the financial burden on consumers. The directive was issued during a high-level review meeting of the power sector on Monday.

Emphasizing public welfare as the core objective, the Chief Minister said the state is implementing key reforms in the electricity sector. He urged officials to adopt advanced technologies and continuously study global best practices to ensure reliable and affordable power supply. He also stressed the need to adapt international innovations to suit local conditions.

Electricity consumption in the state has surged due to rising summer temperatures. Officials informed that power usage has reached 6,397 million units so far this month, marking a 14% increase compared to the same period last year. Daily demand is expected to range between 275 and 285 million units , driven by industrial requirements and seasonal heat. Authorities noted that procurement costs have already been reduced from ₹5.20 in April 2025 to ₹4.90 at present.

The government is also placing strong emphasis on renewable energy. The Chief Minister has set a target for more than 50% of the state’s electricity needs to be met through renewable sources by the 2028–29 financial year. To support this vision, he directed officials to conduct a comprehensive study on pumped storage systems and initiate steps to establish an energy university.

State-run utilities such as AP Transco and AP Genco have been encouraged to utilize their CSR funds for research and innovation, with the government assuring additional financial support if required.

Reviewing central government schemes like PM Surya Ghar Yojana and PM Kusum Yojana , the Chief Minister highlighted progress made so far. A total of 52,396 rooftop solar connections have been provided under the Surya Ghar initiative, with a new target of 2 lakh connections per month. Under the Kusum scheme, 2.94 lakh connections have been achieved, and officials have been directed to complete the first phase by December.

In addition, the government plans to promote electric mobility by expanding EV charging infrastructure across the state and increasing public awareness. The review meeting was attended by Energy Minister Gottipati Ravi Kumar along with senior officials from power utilities and distribution companies.