Telangana has approved the procurement of 3,000 MW of solar power integrated with 6,000 MWh of Battery Energy Storage System capacity for 25 years, creating a large renewable-energy procurement plan aimed at meeting rising peak electricity demand across the state.
The approval was issued through a government order by the Telangana energy department. The procurement will be undertaken 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 order said the decision was taken against the backdrop of a steady increase in Telangana’s peak electricity demand over the past decade. The Central Electricity Authority has projected further growth, attributed in the order to rapid economic development, urban expansion, industrial growth, data centres, electric vehicles and major infrastructure initiatives, including the Regional Ring Road, Future City and Telangana Rising 2047.
The plan combines solar generation with battery storage to address the timing gap between renewable production and electricity demand. Solar power is generated during daylight hours, while stored electricity can be supplied during peak-demand periods. The government said this could also allow thermal power plants to back down during daytime hours, reducing procurement costs.
The order described solar energy as the least-cost source of new renewable power available to the state. 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 tariff for Telangana’s procurement will be determined through the competitive bidding process.
The planned capacity is part of a broader renewable-energy expansion outlined in the state’s policy framework. The order said the Central Electricity Authority’s Resource Adequacy Study and the Telangana Clean and Green Energy Policy 2025 envisage adding 16,000 MW of solar capacity by 2030.
The storage component is significant because it is intended to make solar power available beyond the hours of direct sunlight. The approved procurement therefore links renewable-energy generation with the state’s requirement for dependable power during high-demand periods, including those associated with expanding urban, industrial and infrastructure activity.
TGRedco will adopt standard bidding documents and guidelines issued by the Government of India and the Solar Energy Corporation of India for the tender process. The next implementation stage will be the preparation and issuance of the bidding documents for selecting private project developers.
