The Andhra Pradesh government is planning 3,000 MWh of battery energy storage systems to improve grid reliability, support renewable energy integration and manage peak demand.
The planned systems are expected to reduce dependence on costly thermal power during peak hours, with power purchase costs estimated to decline from about Rs 10 per unit to Rs 4.85 per unit once the projects become operational. The initiative is also expected to generate annual savings of Rs 4 billion-Rs 5 billion, while improving supply quality and reducing outages across identified substations and load centres, particularly in regions with high renewable energy penetration.