The agreement was signed here in the presence of Union Power Minister Piyush Goyal and Andhra Pradesh Chief Minister N. Chandrababu Naidu.
Andhra Pradesh is among few states chosen under the scheme which seeks to provide 24x7 power supply.
The state and central government also inked the MoUs for two mega-watt (MW) power projects. While a 4,000 MW thermal plant will come up in Visakhapatnam, a 2,500 MW solar plant will be set up in Rayalaseema.
National Thermal Power Corporation (NTPC) Limited, NTPC Vidyut Vyapar Nigam Limited and Solar Energy Corporation of India Limited signed the separate agreements with the state government.