Andhra Pradesh plans to procure 1,600 megawatt (MW) of coal-based thermal power through a competitive bidding process to meet rising electricity demand and strengthen long-term energy security. The Andhra Pradesh Electricity Regulatory Commission granted in-principle approval for the procurement, enabling the State distribution companies to initiate the competitive bidding process, according to an official release. The decision responds to forecasts of growing peak demand and the need to secure reliable baseload supply.

State distribution utilities will be authorised to invite bids, evaluate technical and commercial proposals and award contracts under standard procurement norms. The competitive route is intended to achieve cost effectiveness and transparency while allowing the procurers to select suppliers that meet operational, environmental and financial criteria. The official release indicated that the procurement will be integrated with broader system planning to manage demand growth and maintain grid stability.

The move follows continuing efforts by the State to balance the energy mix and ensure uninterrupted supply for industry, commerce and households. While renewable energy capacity has expanded, dispatchable thermal capacity remains important to meet night-time and seasonal baseload requirements and to provide inertia and ancillary services. Procurement of coal-based thermal generating stations is presented by officials as a complement to renewable integration rather than a replacement.

The Andhra Pradesh Electricity Regulatory Commission will oversee the process to ensure compliance with tariffs, technical standards and timelines, and the distribution companies will be responsible for bid evaluation and contract management. Stakeholders expect the bidding process to consider fuel supply arrangements, environmental clearances and operational performance guarantees in the selection criteria while safeguarding consumer interests through competitive pricing. The official release noted that the procurement action is part of an ongoing strategy to secure affordable and reliable power for the State as demand rises.