Telangana has approved the procurement of 3,000 MW of solar power integrated with 6,000 MWh of battery energy storage capacity for 25 years, as the state prepares for rising electricity demand from urban expansion, industry, data centres, electric vehicles and major infrastructure projects.
The approval was issued through a government order by the state energy department, according to a report by Deccan Chronicle. Procurement will be undertaken through the Telangana Renewable Energy Development Corporation Limited, or TGRedco, which has been directed to begin the necessary implementation process.
Private developers will be selected through competitive bidding to develop, finance, own and operate the projects. Telangana’s distribution licensees will purchase the electricity at the tariff discovered through the bidding process. The order also directs TGRedco’s vice-chairman and managing director to take action on the procurement.
The planned battery capacity is intended to extend the usefulness of solar generation beyond daylight hours. According to the order, solar power can help meet daytime demand while battery storage can supply electricity during peak-demand periods. The government said this would allow thermal power plants to back down during the day and could reduce procurement costs.
The decision comes against a sustained increase in Telangana’s peak electricity demand over the past decade. The Central Electricity Authority has projected further growth, with the state’s economic development and urban expansion expected to add pressure to the power system. The order also identifies industrial growth, data centres, electric vehicles and infrastructure initiatives such as the Regional Ring Road and Future City as factors likely to increase demand.
Telangana’s longer-term renewable-energy plans include the addition of 16,000 MW of solar capacity by 2030 under the Telangana Clean and Green Energy Policy 2025 and the CEA’s Resource Adequacy Study. The latest procurement approval forms part of that broader capacity-building target, although the reported order does not specify the locations of the projects or the expected commissioning schedule.
The state government said solar energy is the least-cost source of new renewable power available to Telangana. It also cited recent Solar Energy Corporation of India tenders to state that tariffs for solar power combined with battery storage are lower than thermal power tariffs. The actual tariff for the Telangana procurement will be determined through competitive bidding.
The tender process will use standard bidding documents and guidelines issued by the Government of India and the Solar Energy Corporation of India. The next formal step is for TGRedco to implement the procurement process and invite bids from private developers.
