Turning Waste into Watts: NREDCAP’s New 27 MW PPP Roadmap for Municipal Energy

Turning Waste into Watts: NREDCAP’s New 27 MW PPP Roadmap for Municipal Energy

April 20, 2026

The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) has taken a significant step toward urban sustainability by floating two separate tenders for the development of Waste-to-Energy (WtE) facilities. With a combined capacity of 27 MW, these projects aim to address the twin challenges of municipal solid waste management and clean energy generation in the key cities of Tirupati and Vijayawada. The projects will be developed under a Public-Private Partnership (PPP) model, emphasizing a “Design, Build, Finance, Operate, Maintain, and Transfer” approach.

The initiative is split into two distinct projects: a 12 MW facility in Tirupati with an estimated cost of ₹2.57 billion and a 15 MW facility in Vijayawada costing approximately ₹3.24 billion. Both facilities are designed to process municipal solid waste (MSW) at scale. For instance, the Vijayawada project requires bidders to have experience handling up to 800 tons per day (TPD) of waste. The selected developers will enter into a 22-year concession period, which includes a 24-month construction timeline, ensuring a long-term commitment to the state’s circular economy.

These tenders come with stringent eligibility and technical requirements. Bidders must demonstrate significant prior experience in developing or operating WtE facilities that have been functional for at least two years. The interconnection for both projects will be at 33 kV, linking directly to the state grid via extra-high-tension substations. For the renewable sector, these projects represent an expansion beyond solar and wind, highlighting the potential for WtE to provide stable, base-load renewable power while cleaning up India’s urban landscapes.