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The Andhra Pradesh Electricity Regulatory Commission (APERC) has released the Retail Supply Tariff (RST) Order for the financial year 2025-26. This order covers tariff rates for retail electricity sales and reviews the performance of the distribution companies (DISCOMs) for the year 2023-24. The order applies to the Southern Power Distribution Company of Andhra Pradesh Ltd (APSPDCL), Andhra Pradesh Central Power Distribution Corporation Ltd (APCPDCL), and Eastern Power Distribution Company of Andhra Pradesh Ltd (APEPDCL). A key highlight in this order is the continued focus on renewable energy, particularly solar power. Andhra Pradesh has made significant efforts to increase solar power generation and integrate it into its energy mix. The state’s solar power potential is among the highest in India, and the DISCOMs are working to purchase more solar energy to meet the growing demand. For the year 2025-26, the DISCOMs have projected a total energy sales volume of 75,926 million units (MU), with APSPDCL accounting for 29,574 MU, APCPDCL for 16,193 MU, and APEPDCL for 30,158 MU. To meet this demand, the total power purchase requirement is estimated at 84,390 MU. A large portion of this power purchase will come from renewable sources, including solar energy, to meet renewable purchase obligations and sustainability goals. Solar power plays a key role in reducing the state’s reliance on conventional energy sources like coal. DISCOMs are focusing on solar energy procurement to balance supply and demand and manage energy costs. Andhra Pradesh has promoted solar parks, large-scale solar installations, and rooftop solar systems. These initiatives are designed to reduce transmission losses and make clean energy more accessible to consumers, especially in rural areas. The APERC order outlines the power purchase cost for FY 2025-26, which is a significant part of the Aggregate Revenue Requirement (ARR). Power purchase accounts for ?40,472 crore of the total ARR of ?58,868 crore for all three DISCOMs. Solar energy procurement costs are included in these figures, with several solar projects providing a stable and cost-effective energy source for the state. In addition to procurement, the order mentions incentives and subsidies provided by the state government to promote solar adoption. Andhra Pradesh is offering support for agricultural solar pump sets and rooftop solar installations for domestic consumers. These efforts aim to encourage more people to use solar energy, contributing to the state’s clean energy goals. The performance review for FY 2023-24 included in the order shows an improvement in energy distribution efficiency and reduced transmission and distribution losses. Solar energy, being distributed closer to the consumption points through rooftop systems and local solar farms, has helped in reducing line losses. APERC has also maintained the existing tariffs for 2025-26, with the state government bearing a revenue gap of ?12,632 crore. This ensures that consumers are not burdened with higher tariffs, even as the state transitions to a greener energy mix. The commission has emphasized the importance of continuing solar energy initiatives. It has directed DISCOMs to enhance their renewable energy procurement and improve grid infrastructure to handle more solar generation. These measures will help Andhra Pradesh meet its long-term sustainability targets and improve energy access across the state. |
