Andhra Pradesh ranked sixth among the 10 Indian states surveyed on Climatescope 2014, with a score of 0.91. It performed best on Parameter III, Low-Carbon Business, as it has manufacturers across the entire biomass and solar value chains, as well as some in the wind sector.
The service sectors make up 59% of the state’s $142bn economy.
In 2013, Andhra Pradesh received $636m in clean energy investments, compared with a total of $2.7bn since 2006. The wind sector attracted the largest share (49%) of this investment, although at 564MW it has marginally less installed capacity than the biomass and waste-to-energy sector with 589MW; however, most of the latter was installed prior to 2006. Total renewable energy capacity stands at 1.5GW.
In 2013, Andhra Pradesh generated an estimated 86TWh, although not all of it was consumed within the state. Coal plants accounted for 82% of this, with renewable energy accounting for just 3% (but 8% of installed capacity). Gas-fired generation has fallen since 2012 owing to shortages. The state’s electricity distribution utilities are reasonably healthy financially, with three out of four attaining ‘B+’ credit ratings.
In July 2014, Andhra Pradesh launched a 500MW solar tender, despite the failure of an earlier 1GW auction due to delays and pricing issues. Wind capacity falls far short of its potential to install 14GW, leaving substantial room for growth. However, owing to political changes and the creation of Telengana as a new state in 2014, the large-scale build-out of renewable energy may be delayed for some time.
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