Telangana has approved the procurement of 3,000 MW of solar power combined with 6,000 MWh of battery energy storage capacity for 25 years, as the state prepares for continued growth in peak electricity demand linked to urban expansion, industry and major infrastructure projects.
The approval was issued through a government order by the state energy department, according to a report by Deccan Chronicle. The programme will be implemented through the Telangana Renewable Energy Development Corporation Limited, or TGRedco, which has been directed to take the necessary steps for procurement.
The power will be procured through competitive bidding. Private developers will be selected to develop, finance, own and operate the projects, while Telangana’s distribution licensees will purchase the electricity at tariffs discovered through the bidding process. The order also directs the state to adopt standard bidding documents and guidelines issued by the Government of India and the Solar Energy Corporation of India.
The decision comes against the backdrop of a steady rise in Telangana’s peak electricity demand over the past decade. The Central Electricity Authority has projected further growth driven by economic development, urban expansion, industrial activity, data centres, electric vehicles and large infrastructure initiatives, including the Regional Ring Road and Future City projects.
The government has described solar power as the least-cost source of new renewable electricity available to the state. According to the order, increased solar generation could reduce procurement costs by allowing thermal power plants to back down during daytime hours, when solar generation is available. Battery storage would allow part of that electricity to be supplied during peak-demand periods rather than only when sunlight is available.
The order also referred to recent Solar Energy Corporation of India tenders and stated that tariffs for solar power combined with battery storage were lower than thermal power tariffs. The state’s procurement model will therefore determine the final cost of electricity through competitive bidding, as well as the terms under which developers provide generation and storage capacity over the 25-year period.
The programme forms part of Telangana’s larger renewable-energy expansion plans. The Central Electricity Authority’s Resource Adequacy Study and the Telangana Clean and Green Energy Policy 2025 envisage the addition of 16,000 MW of solar capacity by 2030. The newly approved procurement is one component of that planned expansion and is intended to address both renewable-energy goals and the operational challenge of meeting demand during peak hours.
For the state’s distribution licensees, the storage component is significant because it links solar generation with the timing of electricity demand. Telangana’s projected growth in urban development, industrial activity, electric mobility and data infrastructure is expected to increase the need for dependable power across different parts of the day. The government order places TGRedco in charge of moving the proposal towards the tendering stage, with project developers to be selected after the competitive bidding process.
