The background study represents the rst part of the deliverables of the Work Package 3.2. A for milestone one. It re ects the status of the power sector of Andhra Pradesh with speci c consideration of Greater Hyderabad. Beside transport, electricity is the main application of energy sources in the areas of generation, transmission, generation and consumption. The study places particular attention, rst, to the regulatory framework of the Andhra Pradesh power sector and the linkages to Hyderabad and, second, to the state of the sub-sectors. Based on this we identify sources for ine cient energy...