The Telangana government has approved the procurement of 3,000 MW of solar power integrated with 6,000 MWh of Battery Energy Storage System (BESS) capacity for 25 years. The procurement will be undertaken through the Telangana Renewable Energy Development Corporation (TGRedco).

The energy department issued a government order authorising the procurement through competitive bidding. Private developers will be selected to develop, finance, own and operate the projects, while the state’s distribution licensees will purchase the electricity at tariffs discovered through the bidding process.

The order said the decision was based on a steady rise in Telangana’s peak electricity demand over the past decade. The Central Electricity Authority (CEA) has projected further growth because of economic development, urban expansion, industrial activity, data centres, electric vehicles and major infrastructure projects, including the Regional Ring Road, Future City and Telangana Rising 2047.

The government said solar power was the least-cost source of new renewable energy available to the state. The CEA’s Resource Adequacy Study and the Telangana Clean and Green Energy Policy 2025 envisage the addition of 16,000 MW of solar capacity by 2030.

Solar generation is expected to reduce procurement costs by allowing thermal power plants to back down during daytime hours. Battery storage will enable solar electricity to be supplied during peak-demand periods, and the order cited recent Solar Energy Corporation of India tenders indicating that solar-plus-BESS tariffs were lower than thermal power tariffs.

TGRedco’s vice-chairman and managing director has been directed to take the necessary steps to implement the procurement. Standard bidding documents and guidelines issued by the Government of India and the Solar Energy Corporation of India will be adopted for the tender process.