Synopsis: Kadapa is an emerging centre for renewable energy in South India with mega solar parks, pumped storage projects and hybrid renewable projects. The district has 5 major ongoing renewable energy projects. This article will discuss the 5 major projects, what they provide and the growth factors.
While the price of petrol, diesel rising and electricity consumption growing, the focus has now shifted on renewable energy for both the government and industries. The state of Andhra Pradesh has gradually become an important clean energy hub for large-scale solar parks, pumped storage projects, and hybrid renewable energy projects, particularly in the Kadapa district. With robust policy backing and huge investments, Kadapa is fast emerging as one of the fastest-growing renewable energy hubs in South India.
Reasons Why Kadapa Is Emerging as a Renewable Energy Hub
Kadapa is one of the best areas in Andhra Pradesh for producing large-scale solar energy due to the high level of solar radiation it receives, aiding in the production of nearly 5.5-6.0 kWh of solar energy per day per square metre. Andhra Pradesh is one of the top renewable energy states in India with more than 14 GW of installed renewable energy (RE) power and Kadapa is emerging as one of the fastest-growing districts for solar power and storage projects in the state. The thermal power costs in India are also shooting up due to rising prices of coal, diesel and LNG and the cost of solar energy is now near ₹2.5–₹3 per unit, making renewable energy more economical than the thermal option. The vast land resources and dry climate of Kadapa are conducive to mega projects occupying thousands of acres with ultra mega solar parks and new 1 GW renewable projects. The district has been able to lure pumped hydro storage projects such as Gandikota, which are essential to store excess renewable energy and provide electricity during peak demand hours.
Adani Gandikota-2 Pumped Storage Project (2,250 MW)
- Under the AP Integrated Clean Energy Policy 2024, the government of Andhra Pradesh has approved the 2,250 MW Gandikota-2 Pumped Storage Project in Kadapa, which is one of the largest pumped hydro storage projects in South India.
- It will be developed by Adani Group through its entity Adani Hydro Energy Eleven Ltd at Lord Balaji Donthi Kona PSP Park in YSR Kadapa district.
- Allocation of 29.2 million cubic metres (MCM) of water was done from the Gandikota reservoir for initial filling for the project and an additional 2.2 MCM was allocated annually to compensate for evaporation losses.
- The project is scheduled for a development period of 72 months and will be a key enabler in the development of the renewable energy ecosystem in Andhra Pradesh.
- The project’s capacity of 2,250 MW is significant enough to provide a buffer against surges in solar and wind energy production and help balance energy demand and supply during periods of peak demand, thereby enhancing grid stability and minimizing power shortages.
- With the vision of investing in the clean energy infrastructure in Andhra Pradesh to create an employment opportunity of nearly 7.5 lakh jobs across the state, the state government has rushed to invest heavily in this sector.
NTPC Green Energy / Ayana Kadapa Solar Project (250 MW)
- In Andhra Pradesh, NTPC green energy added another 91.6 MW solar power capacity through its Kadapa solar project, bringing the project’s capacity to 250 MW.
- The 91.6 MW phase of it was commissioned and got into commercial operation from 27th February, while the other commissioned phase of the project contributed 158.4 MW to complete the full-scale rollout in Kadapa.
- The project is being built by Ayana Kadapa Renewable Power Pvt Ltd and is under long term renewable energy contracts, which is supporting the strengthening of utility scale solar in Andhra Pradesh.
- The installed renewable energy capacity of the NTPC Green Energy Group, since the commissioning, has gone from 9,201.08 MW to 9,292.68 MW, which is a 0.99% jump in the total installed renewable energy capacity.
- At a capacity of 250 MW, the solar plant can provide clean solar energy to lakhs of households per year which can help in the reduction of the coal based thermal power generation.
- In the past few years, the price of utility-scale solar has dropped to almost ₹2.5 to ₹3 per unit, whereas the cost of thermal power projects has increased due to an increase in the cost of coal and fuels and projects like Kadapa are far more economical.
Kadapa Ultra Mega Solar Park
- One of the biggest solar infrastructure projects in Andhra Pradesh, the Kadapa Ultra Mega Solar Park is being built under the Ultra Mega Solar Park scheme in India with a planned capacity of 1000 MW.
- The project is distributed across almost 5,930 acres in Mylavaram area of Kadapa district with an average solar radiation of 5.5 -6.0 kWh per square metre per day.
- The implementation of the solar park is being carried out by APSPCL, a joint venture between SECI, APGENCO and NREDCAP and NTPC is serving as the nodal coordination agency for the development and tendering of the project.
- The biggest operational project within the park is the 250 MW solar project developed by ENGIE through SolairePro Urja Pvt Ltd, which is being commissioned in phases from 2019 to 2020.
- The ENGIE project is one of the most technologically advanced solar installations in the Rayalaseema region with the deployment of almost 1 million solar panels and more than 2,700 string inverters.
- The solar park caught the national limelight when solar tariffs auctions by NTPC fell to almost ₹3.15 per unit, which reflected the falling cost of utility scale solar power compared to the traditional thermal power generation.
- The installation of advanced robotic cleaning systems at the project conserves almost 48.5 million litres of water per year, a crucial aspect for sustainability in areas where water is scarce and valuable, such as Kadapa.
New 1 GW Solar Park
- Under the ambitious plan for the expansion of renewable energies, the government of Andhra Pradesh has approved the allocation of land for a new solar park of 1,000 MW in Kadapa. 466.5 acres in the Mylavaram mandal of YSR Kadapa district.
- The project will be implemented under the banner of Andhra Pradesh Solar Power Corporation Pvt Ltd (APSPCL) and land will be leased out to private developers for 33 years, to promote long-term investment in renewable energy.
- In addition to Kadapa, another 1,000 MW solar park was also approved in Kurnool, thus making the total new solar capacity approved in the state to 2 GW.
- As the industrial and urban electricity demand continues to grow at a rate of almost 6–7% annually in India, the cost of electricity generation is being driven down due to fluctuations in coal and fuel prices, such projects are gaining in significance.
- The operational project will generate a 1 GW capacity of clean energy and help power lakhs of homes per year, while cutting dependence on fossil fuel energy generation.
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Dalmia Cement Hybrid Renewable Energy Project
- Industrial use of clean energy solutions are being promoted with the partnership between Dalmia Bharat and Oyster Renewable Energy for a hybrid renewable energy project worth ₹270 crore in Kadapa district.
- The overall installed capacity of the project will be 31.6 MW, made up of 21.6 MW wind power and 10 MW solar power in a co-located hybrid renewable model.
- The hybrid renewable plant is expected to start operations by 2027 and will mainly cater to the captive demand of Dalmia Cement for their manufacturing process in the state of Andhra Pradesh.
- The project is expected to save 69,000 metric tonnes of CO₂ emissions per year, helping Dalmia Bharat meet its carbon reduction and sustainability targets.
- Oyster Renewable Energy is simultaneously targeting an estimated investment pipeline of around ₹30,000 crore in India for the development of nearly 3.5 GW of hybrid renewable energy by 2030.
The Impact of Renewable Energy on Kadapa’s economy
- Nearly ₹10 lakh crore renewable energy investments, creation of 7.5 lakh jobs are envisaged under the clean energy policy of Andhra Pradesh and Kadapa is among the districts that would gain from the transition.
- Investments in mega projects like solar parks, pumped storage plants, and hybrid renewable projects are being commingled in Kadapa and the region’s infrastructure and industrial development are on the rise.
- The growth of renewable energy creates jobs throughout the construction, engineering, electrical, transmission, logistics, operations and maintenance landscape. Adani Gandikota-2 PSP is expected to generate jobs of more than 3,300.
- The falling solar tariffs of almost ₹2.5- ₹3 per unit are helping industry to cut electricity costs as compared to the rise of coal, diesel and LNG prices of thermal power.
- This clean energy boom is also impacting landowners with a potential annual income of roughly ₹31,000 per acre and a 5% hike every two years if the leasing of land for clean energy becomes a reality.
Conclusion
Kadapa is emerging as one of the biggest hubs for Renewable Energy in South India with Mega Solar Parks, Pumped Storage Projects and Hybrid Clean Energy investments rolling into the town and district of Kadapa on a massive scale and in the trillions of crores. The increased costs of fuels and thermal power are also driving the trend towards more affordable and sustainable renewables in the region.
Written by Boyapati Sai Jasmitha
