Andhra Pradesh to Procure 1,600 MW of Thermal Power Via Competitive Bidding

Andhra Pradesh will procure 1,600 MW of coal-based thermal power through a competitive bidding process to meet rising electricity demand and strengthen long-term energy security, after the state regulatory commission granted in-principle approval. The power will be procured by the state's distribution companies through Tariff-Based Competitive Bidding (TBCB) under Section 63 of the Electricity Act, 2003, using the Design, Build, Finance, Own and Operate (DBFOO) model. The procurement of 1,600 MW of thermal power has been approved in-principle to meet the state's growing electricity demand through a transparent competitive bidding process under the DBFOO model, Andhra Pradesh Electricity Regulatory Commission (APERC) said in a press release.

The bidding process will be conducted on the basis of the standard Request for Qualification (RfQ), Request for Proposal (RfP) and Power Supply Agreement (PSA) documents notified by the Union Ministry of Power. The proposed procurement marks the first phase of Andhra Pradesh's long-term thermal capacity addition programme.