Andhra Pradesh plans 3,000 MWh BESS rollout to support grid stability

Andhra Pradesh is planning large-scale deployment of Battery Energy Storage Systems (BESS) to improve power reliability and support integration of renewable energy. The programme targets a total capacity of 3,000 MWh in phases, with 1,000 MWh planned for completion by January 2027. Tenders are expected to be issued shortly, with participation from private developers.

The investment is estimated at around Rs 1.68 crore per MWh, with viability gap funding and central support expected to play a role. The state is also evaluating co-location of BESS with solar and wind projects to improve utilisation and system efficiency. Officials estimate that peak power procurement costs could decline from Rs 10 per unit to about Rs 4.85, resulting in annual savings of Rs 400–500 crore. Multiple substations and load centres have been identified, with priority given to areas with high renewable penetration.

The initiative is expected to reduce outages, improve supply quality, and strengthen the financial position of distribution companies by lowering power purchase costs. Declining battery prices and advances in grid technologies are supporting the viability of such projects.

The state government recently approved allocation of land for two ultra-mega solar parks in YSR Kadapa and Kurnool districts, each with a planned capacity of 1,000 MW, as part of efforts to expand grid-connected solar capacity.

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