Andhra Pradesh Minister Nara Lokesh addressed the CII Partnership Summit in Visakhapatnam on Thursday, urging accelerated renewable energy infrastructure development. He warned that high capital costs could double project expenses within three years, creating an urgent need to construct facilities quickly. Lokesh stated his ambition for the state to become a leading global exporter of clean energy, comparing its potential role to that of Saudi Arabia in the oil industry. He emphasized that India currently relies on other nations for energy needs and that green molecules could help achieve domestic independence in the current geopolitical climate.
The minister highlighted that energy consumption in Andhra Pradesh has already risen by 30 percent. With the establishment of data centers and other industrial projects, he projected that energy requirements could potentially double within two to three years. To address this, he noted the state possesses abundant sites for wind, solar, and pumped hydro storage projects. However, he identified the primary challenge as the speed of installation rather than resource availability. Lokesh stressed that renewable energy players must ensure round-the-clock green energy delivery at competitive prices to remain viable.
He pointed out the volatility in energy pricing, noting that daytime solar prices have crashed to 50 paisa per unit, while nighttime prices revert to Rs 10 per unit and could reach Rs 30 if caps are removed. To mitigate these fluctuations, the government aims to construct projects rapidly before capital costs escalate further. "We have to construct the projects in a hurry," Lokesh said, according to ThePrint, adding that delaying construction means paying double the current amount three years later. This strategy is critical for maintaining the competitiveness of the state’s renewable sector.
Beyond energy, the minister invited companies to invest, build factories, and shift their headquarters to Andhra Pradesh. He cited the state’s 1,000-kilometer coastline, connectivity, and talent pool as key attractions. Lokesh highlighted that several major firms, including LG Electronics and Google, are already investing in the region. He described the state’s approach as a "3S" mantra of speed, stability, and services, promising that once a handshake is given, the government treats the project as its own to ensure commercial production happens without delay.