Andhra Pradesh Set to Procure 1,600 MW Coal Power Through Tariff-Based Bidding
GS3Economy · S&T · Environment · Security· Infrastructure (energy, ports, roads, railways)· Prelims·
Why in news
Andhra Pradesh is initiating a tariff-based competitive bidding process to procure 1,600 MW of coal-based thermal power to ensure energy security.
Background
The procurement follows a review meeting by CM N. Chandrababu Naidu and received in-principle approval from the Andhra Pradesh Electricity Regulatory Commission. It aligns with the Central Electricity Authority’s Resource Adequacy Plan to add 5,588 MW by 2035-36.
Facts for Prelims
- FactAndhra Pradesh aims to procure 1,600 MW of coal-based thermal power through tariff-based bidding.
- BodyThe Andhra Pradesh Electricity Regulatory Commission (APERC) is the state body responsible for regulating electricity tariffs and power procurement.
- BodyThe Central Electricity Authority (CEA) provides the Resource Adequacy Plan for power requirements.
- FactThe state's long-term goal is to add 5,588 MW of power capacity by 2035-36.
For Mains
Q. Discuss the challenges and necessity of balancing coal-based power procurement with India's commitment to renewable energy targets for long-term energy security.
Dimensions to cover in your answer
- Energy security vs. decarbonization goals
- Role of tariff-based bidding in cost efficiency
- Infrastructure requirements for grid stability
Keywords: Energy Security · Tariff-based Bidding · Resource Adequacy · Power Procurement · Grid Stability
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