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AP-Genco is planning to diversify its energy mix by setting up a Small Modular Reactor (SMR) and a thermal power plant in Srikakulam district through a joint venture with Coal India Limited. The initiative aims to contribute to the state's power requirements while minimizing carbon emissions.

Currently, the project is in an early stage due to considerations of cost, regulatory issues, and the absence of operational SMRs in the country. Additionally, AP-Genco is focusing on completing Pumped Storage Hydropower Plants (PSHP) to sustain grid requirements, as they currently provide 45-55% of the grid's power.

The efficiency of Thermal Power Plants (TPPs) is also being maintained through coal blending strategies to counteract grade slippages. The decision on the thermal plant location will depend on coal costs and transportation, with options in Srikakulam and Talcher, Odisha. AP-Genco holds coal linkages with Mahanadi Coalfields Limited, Singareni Colleries Company Limited, and Eastern Coalfields Limited.