Munich Personal RePEc Archive

Looming Power Crisis in Andhra Pradesh

Motkuri, Venkatanarayana and Bhagavatula, Sridhar (2013): Looming Power Crisis in Andhra Pradesh.

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Andhra Pradesh has been experiencing increasing energy deficits since 2004-05. Energy deficit has increased from a negligible 0.7% in 2004-05 to 6.6% in 2009-10 and to a whopping 22.8% in 2012-13 (as per load generation balance report 2012-13, Central Electricity Authority, 2013). On the whole, the state has not taken measure for the supply side management as much as that of the demand side management of the power sector. State doesn’t have its reserve of generating capacity to fall back on for the rising demand. the energy requirement in the state is expected to increase from around 84 billion units (in 2011-12) to over 173 billion units by the end of 2020-21. The increase is expected to be driven mainly by industrial sector whose percentage consumption is expected to increase from 32% (in 2011-12) to over 44% in 2020-21. Whether the State will be able to meet such a rise in demand? This calls for Supply Side Management. Thus, the Government of Andhra Pradesh must relook at its strategies, especially supply side management, and come up with a comprehensive energy policy for the state with a strong linkage with policy execution.

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