The project facilitates the evacuation of renewable power from Ananthapur, part of Andhra Pradesh’s 51 GW RE potential, as identified by MNRE. It provides critical infrastructure for both states to access and integrate this energy into their power systems, enhancing overall grid resilience and capacity.

Electricity demand is growing steadily in both states, with Andhra Pradesh forecasted to grow at ~8% annually and Karnataka witnessing similar industrial and urban expansion. This transmission infrastructure ensures that increasing demand is met with clean, low-cost, and reliable renewable energy.

The high-capacity 765 kV corridor between Ananthapuram-II and Davangere establishes a robust inter-state link that enhances power flow flexibility, reduces congestion, and improves the reliability of energy supply across the Southern Region.

With both Andhra Pradesh and Karnataka identified as future green hydrogen and clean industrial zones, this project will supply stable renewable energy essential for round-the-clock power needs. Locations like Visakhapatnam, Kakinada, and Bengaluru’s industrial belts stand to benefit from reliable clean energy for green manufacturing and hydrogen fuel production.

The project is aligned with Andhra Pradesh’s vision to attract ₹10 lakh crore investments and create over 7.5 lakh jobs through RE capacity expansion. Similarly, Karnataka’s RE policy (2022–2027) aims to position the state as a preferred destination for green energy investments. This transmission system serves as a backbone for these investment pipelines.

Both states have adopted forward-looking clean energy goals: Andhra Pradesh through its Green Vision 2029 and Karnataka by targeting 15,392 MW RE capacity by 2027 and supporting EV adoption. The project supports decarbonization of the grid, enabling sustainable mobility, clean industries, and reduced carbon emissions.

By integrating cost-effective renewable energy into the grid, the project will reduce dependency on fossil-fuel-based generation, thereby lowering the overall power procurement cost for DISCOMs and consumers in both states. This directly supports programs like free solar power to farmers in Andhra Pradesh and open access for C&I users in Karnataka.