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India’s ₹28,436 crore green energy corridor in Andhra Pradesh aims for 72 GW of renewables by 2029

Anke by Anke
June 6, 2025 at 7:50 AM
in Energy
$300,000,000 and 72 GW of 'green energy'

Credits: seetao

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Variety is the spice of life, and India’s green energy sources sure fit the bill. The country has a variety of languages, of which 22 are official. India is also a megadiverse since it is home to almost 10% of the world’s species and lest we forget its major contribution to the world’s spices, such as turmeric, pepper, and cardamom. Now, India plans on using green energy in its most extreme plan yet, with a ₹28,436 crore investment and a target of 72 GW of ‘green energy.’

Powering India’s grid with green energy

The Chief Minister of Andhra Pradesh, N Chandrababu Naidu, recently announced plans for a ₹28,436 crore green energy corridor which will provide renewable energy from various projects to India’s main grid. This ambitious project highlights Andhra Pradesh’s goal of supplying 72 GW of green energy by 2029.

The Chief Minister’s green energy corridor project will comprise the construction of transmission networks and central substations. Funding for the green energy corridor will come from the following:

  • 40% of the cost will be provided by the Ministry of New and Renewable Energy
  • Another 40% of the cost will be provided through a loan
  • The last 20% will be from equity by Power Grid Corporation of India

Andhra Pradesh will rewrite renewable energy history

Andhra Pradesh’s green energy corridor will reportedly result in the use of 11,000 MW of power from renewable energy projects and 7,000 MW from pumped hydroelectric storage projects. The corridor will inevitably accord to India’s additional renewable energy volume targets.

Possible challenges

The Rayalaseema region is known for its potential renewable energy production and pumped storage schemes, however, vast transmission networks will be required to transfer the power while load growth is mainly in the coastal regions. It is in these coastal regions where green hydrogen hubs from the NTPC’s Green Hydrogen Hub project and Greenko project are being constructed, as well as data centers and other major energy-intensive sectors.

Many of the renewable energy sites that have been allocated to other major developers remain inoperative, with squatting as a result on the nearby substations. This makes it impossible for the state to allocate new capacities. This is why the government brought an Extra High Tension (EHT) transmission network forward, hoping to connect these energy sources and transfer the power to the coastal regions.

India does not shy away from a challenge

After the state’s proposal of a reliable Extra High Tension (EHT) transmission network to connect Rayalaseema’s production zones with the coastal regions, Andhra Pradesh acted rapidly. The Central Electricity Authority command was presented on December 17, 2024, as a solution to bridge the gap, after which Andhra Pradesh acted accordingly by submitting a thorough network plan within ten days of the issue.

“The state government does not want to immediately cancel the land allotments because it would lead to unnecessary litigation. As it is tightening the screws to make these investors deliver, it has also proposed the green energy corridor to ensure that new projects can come up and can be connected to the grid and evacuation takes place.” – Per an anonymous senior government functionary’s report to ET.

Andhra Pradesh’s green energy corridor proposal is presently at the central government for review, and it will most likely move swiftly to the Union Cabinet for review soon. The state is being backed by other renewable-rich states such as Gujarat and Rajasthan, that plan on connecting their renewable energy projects to the developing national green energy corridor.

India is certainly making its mark in the renewable energy sector, showcasing its dedication to the global energy transition to renewable energy solutions and lowering its overall carbon footprint. We won’t be surprised to see the proposal move through the review process swiftly.

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