Telangana has approved the procurement of 3,000 MW of solar power integrated with 6,000 MWh of battery energy storage for 25 years, creating a large new clean-power supply plan intended to meet the state’s rising electricity demand.
The approval was issued through a government order by the state energy department. Procurement will be carried out through competitive bidding by the Telangana Renewable Energy Development Corporation Limited, or TGRedco. Private developers selected through the process will develop, finance, own and operate the projects.
Under the proposed arrangement, Telangana’s distribution licensees will purchase the electricity at tariffs discovered through bidding. The government has directed TGRedco’s Vice-Chairman and Managing Director to take the necessary steps to implement the procurement process.
The decision comes against the backdrop of a steady increase in Telangana’s peak electricity demand over the past decade. The order cited projections by the Central Electricity Authority that demand will continue to grow as a result of economic development, urban expansion, industrial activity, data centres, electric vehicles and major infrastructure initiatives.
The projects named in the order include demand drivers linked to the Regional Ring Road, Future City and the Telangana Rising 2047 development agenda. These initiatives are expected to increase the amount of electricity required by urban areas, industries and new infrastructure networks across the state.
The state government said solar energy is the least-cost source of new renewable power available to Telangana. It also said solar generation could reduce procurement costs by allowing thermal power plants to back down during daytime hours, when solar production is available.
The battery storage component is intended to extend the usefulness of that solar power beyond daylight hours. According to the government’s order, stored electricity can be supplied during periods of peak demand, allowing the state to use solar generation when electricity consumption is highest rather than limiting it to the hours of sunlight.
The order referred to recent tenders conducted by the Solar Energy Corporation of India to support its position that tariffs for solar power combined with battery storage are lower than thermal power tariffs. The final price for Telangana’s procurement, however, will be established through the competitive bidding process.
The approval is also linked to the state’s longer-term renewable-energy targets. 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 in Telangana by 2030. The newly approved procurement forms part of the state’s effort to expand renewable supply while preparing for higher electricity demand.
The procurement model places TGRedco at the centre of the implementation process, while private developers will be responsible for building and operating the projects. The state’s distribution licensees will remain the purchasers of the electricity generated under the contracts.
The next stage will involve the preparation and issuance of tenders. Telangana will adopt standard bidding documents and guidelines issued by the Government of India and the Solar Energy Corporation of India for the procurement process.
