The successor state of Andhra Pradesh has chalked out a comprehensive action plan to make the state a renewable energy hub in the next four years. Under this plan, the government has contemplated to achieve 5,000 MW solar power and 4,000 MW wind power by 2019 to meet the twin objectives of energy security and clean energy considerations. Impressed with the new solar and wind policy, KFW, a German Bank, has agreed to sanction Rs 515 crores at concessional rate of interest towards green energy corridor.

It's estimated that Rs 1,289 crores would cost for the completion of Green Energy Corridor and already Rs 515 Crores have been secured. The APTRANSCO and Discoms would soon initiate steps to mobilise the balance investments from Power Finance Corporation (PFC) and Rural Electrification Corporation (REC). The Discoms would procure around 2,000 MW of solar power capacity in a phased manner within the next 4 to 5 years and they would enter a long-term Power Purchase Agreement (PPA) of 25 years with developers who are selected, based on a competitive procurement process.

The government has initiated all measures to develop the solar park with a capacity of around 2,500 MW, with support of Centre, public undertaking sectors like National Thermal Power Corporation (NTPC), NVVL, Ministry of New and Renewable Energy (MNRE). The state is now contemplating to develop 1,000 MW solar power parks in Anantapur, Kadapa and Kurnool districts. A solar park shall consist of various zones like solar power projects, manufacturing zones, R&D and training centres. Thus, it's expected that Andhra Pradesh would become Renewable Energy Hub in the next four years.