Visakhapatnam, November 14: Andhra Pradesh Minister Nara Lokesh has called for faster execution of renewable energy projects, cautioning that rising capital costs could significantly increase project expenses if investments and construction are delayed. He said project costs could potentially double over the next three years, underlining the need for quicker implementation.

Speaking during a panel discussion at a recent media Summit in Visakhapatnam, Lokesh outlined Andhra Pradesh’s potential to emerge as a major centre for clean energy production, with opportunities across wind, solar and pumped storage projects.

“I want Andhra Pradesh to be the Saudi Arabia of clean energy,” he said, describing the state’s renewable energy potential and the possibility of converting clean electricity into green molecules for wider domestic and international use.

Green Molecules for Energy Security

Lokesh highlighted India’s dependence on other countries to meet its energy requirements and called for greater domestic energy production, particularly in view of the prevailing geopolitical situation.

He emphasised the potential of green molecules, including green hydrogen and other clean fuels, in converting renewable energy into forms that can be stored, transported and used across different sectors.

He also suggested that renewable energy could be used to produce these molecules for domestic consumption as well as international markets, helping address energy requirements and reduce dependence on external sources.

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Rising Energy Demand and Infrastructure Requirements

The minister noted that Andhra Pradesh had recorded a 30 per cent increase in energy consumption. He added that the state’s electricity requirement could potentially double over the next two to three years, partly driven by the development of energy-intensive projects such as data centres.

He said conventional energy sources, including gas and thermal power, would continue to provide a certain level of baseload electricity even as renewable energy capacity expands.

Lokesh also pointed to the state’s favourable conditions for renewable energy development, including suitable locations for wind, solar and pumped hydro storage projects. However, he identified the pace of project implementation as a key challenge in meeting the anticipated growth in electricity demand.

Round-the-Clock Renewable Energy Delivery

Lokesh said renewable energy developers operating in Andhra Pradesh face the challenge of supplying round-the-clock green electricity at competitive prices.

Explaining the price variation in solar power, he observed that daytime solar tariffs could fall to around 50 paise per unit, while electricity prices could rise to approximately ₹10 per unit at night. He added that prices could potentially reach ₹30 per unit if the applicable cap were removed.

He stressed the need to address this variation and develop mechanisms to ensure reliable, round-the-clock renewable energy supply.

The minister’s remarks highlighted the importance of combining renewable generation with storage and other supporting infrastructure to ensure electricity availability beyond daylight hours.

Faster Execution to Manage Capital Costs

Lokesh urged renewable energy developers to accelerate project construction, pointing out that delays could make investments substantially more expensive.

He said the cost of capital remained a major concern for the sector and that projects not developed in the present period could face considerably higher costs three years later.

His comments underscored the need for timely project execution, investment mobilisation and the development of integrated renewable energy infrastructure as Andhra Pradesh prepares for higher electricity demand.

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