Telangana Targets 20 GW RE, Storage Capacity Additions By 2030

Shortly after releasing its draft renewable energy policy earlier this year, the Telangana government unveiled its official Renewable Energy Policy for 2025. The Telangana Renewable Energy Development Corporation Ltd (TGREDCO), has now issued a policy, setting an ambitious target to boost the state’s renewable energy capacity, aiming for 20 GW of renewable energy and storage capacities by 2030.

To achieve this target, TGREDCO has introduced a range of government-backed incentives, including capacity subsidies, SGST reimbursements, electricity duty exemptions, and reimbursements for transmission and wheeling charges. Additionally, the policy provides a 100% reimbursement of the cross-subsidy surcharge for manufacturers. According to the policy, this reimbursement will be available for 10 years from the commencement of commercial production, after which the surcharge will be applicable as per prevailing regulations.

The latest notification also offers an off-take guarantee. It mentioned, “For each tender called by TGDISCOMS, 10% (over & above the tendered capacity) will be offered to manufacturing plants set up in the state. The tariff for such capacity will be the lowest (L1) tariff discovered during the tender process or the L1 price discovered in the latest SECI tenders (whichever is lower). In case of multiple eligible manufacturing plants interested in supplying power, the capacity will be allocated to the eligible developers in proportion to their manufacturing capacity.”

Wind Energy 

The agency also plans to issue wind energy tenders. It mentioned, “ If the identified site is government land, a nominal lease will be fixed for the period of Power Purchase Agreement (PPA) at 10% of the market value/annum at the prevailing rate as per records at the time of bidding, with an escalation of 5% for every two years.” 

For repowering wind energy projects, the guideline mentioned, “The Government of Telangana will promote wind repowering by replacing lower-capacity, lower-hub-height Wind Turbine Generators (WTG) with advanced, higher-capacity WTGs, in line with the National Repowering and Life Extension Policy for Wind Power Projects, 2023. Repowering of existing wind turbines that have surpassed ten (10) years of operation will be facilitated. In case of power being purchased by Telangana DISCOMs through PPA, power generated corresponding to the average of the last three (3) years generation before repowering will continue to be purchased on the terms of PPA in force, as approved by the commission.”

For open access, captive, and group projects, the guidelines nodal agency grants a 1-year extension beyond the commissioning deadline by encashing 50% of the PBG. The notification also granted an additional 1-year extension is granted upon encashment of the remaining 50% of the PBG. The regulation granted other incentives such as a 25% reimbursement for specific cleaner production measures limited to Rs. 5 Lakhs. It also granted a 50% of exhibition expenses will be reimbursed limited to Rs. 5 Lakhs. An additional 10% investment subsidy will be provided for Women Promoter-led entities, subject to a maximum of additional Rs.  10 Lakhs for MSES. INR 5 Lakhs as recruitment assistance, based on the level of employment generated, for employing a minimum of 50 employees.

BESS Project

The policy also places the onus on the state to encourage the development of BESS to enhance network utilization, optimize usage of RE by mitigating variability, and ensure energy resilience. The notification stated, “The tenders for these projects would be allocated through TBCB, government land may be offered at a nominal lease for the period of Power Purchase Agreement (PPA) at 10% of the market value/annum at the prevailing rate as per records at the time of bidding, with an escalation of 5% for every two years.”

It further mentioned, “The project commissioning deadline will be 1 year from the date of issue of capacity allocation and the nodal agency will grant a 1-year extension beyond the commissioning deadline by encashing Performance Bank Guarantee (PBG).” The policy also laid down the following charges for renewable energy and storage projects.