Telangana Cabinet Clears Major Renewable Push with 3,000 MW Solar and 2,000 MW Pumped Storage Projects – EQ
In Short : The Telangana Government has approved major renewable energy initiatives, clearing PPAs for 3,000 MW of solar power and plans for 2,000 MW of pumped storage projects. The Cabinet aims to strengthen energy security, prevent future power shortages, promote industrial growth, and modernise thermal infrastructure while ensuring affordable and reliable electricity supply.
In Detail : The Telangana Government has taken a strategic policy decision to increasingly shift from conventional power sources towards renewable and sustainable energy to meet the State’s future electricity requirements. This move reflects the government’s long-term vision to strengthen energy security while addressing rising demand from domestic, agricultural, and industrial sectors.
In a key development, the State Cabinet approved the signing of Power Purchase Agreements for 3,000 MW of solar power. These PPAs will be valid for five years and are designed to ensure uninterrupted and affordable power supply across Telangana, positioning solar energy as a central pillar of the State’s energy mix.
Alongside solar power, the Cabinet also approved plans to utilise 2,000 MW of pumped storage power in the near future. Officials have been instructed to invite tenders for setting up pumped storage projects at suitable locations, highlighting the government’s intent to invest in energy storage solutions that support grid stability.
The Cabinet meeting, chaired by Chief Minister A. Revanth Reddy, focused extensively on energy-related issues, underlining the priority given to preventing power shortages. Senior officials presented a detailed assessment of power requirements for the next decade, which formed the basis for these policy decisions.
Based on projections, the Cabinet agreed to promote a balanced combination of conventional and renewable energy sources. This approach aims to ensure that Telangana can meet steadily increasing electricity demand while maintaining reliability and sustainability in its power infrastructure.
IT and Industries Minister D. Sridhar Babu stated that Telangana has several geographically suitable locations for pumped storage projects. Entrepreneurs willing to establish such plants will be provided land and water facilities, with the condition that the entire power generated will be sold exclusively to State-run Discoms.
In another significant move, the Cabinet decided to allow new industrial units to opt for captive power generation without any upper limit on capacity. This decision is intended to support industrial growth, while existing industrial units will continue to receive power under the current system.
The Cabinet also discussed setting up an 800 MW thermal power plant at Ramagundam by replacing the existing sub-critical unit with a super-critical coal-based plant. Similar projects are proposed at Paloncha and other locations in collaboration with NTPC, with the final developer to be selected based on cost efficiency.
Additionally, the Cabinet approved the creation of a new exclusive power distribution company to handle free power supply to the agricultural sector. Overall, these decisions reflect Telangana’s commitment to building a future-ready, sustainable, and financially stable power ecosystem while protecting consumer interests.
