Telangana ERC Weighs Discoms’ Renewable Capacity Plans

The Telangana Electricity Regulatory Commission (ERC) has been asked to consider the capacity addition plans of the state’s distribution companies, with the Solar Energy Corporation of India (SECI) seeking flexibility in the procurement route. SECI said the Telangana Discoms should be allowed to procure power through suitable agencies, including Renewable Energy Implementing Agencies (REIAs), TG Genco and TGREDCO.

A public hearing on the proposed renewable energy purchases was held in Hyderabad on Tuesday. The Discoms have proposed procuring 800 MW of standalone wind generation for 25 years, along with 3,000 MW of solar capacity under the Telangana Green Energy Policy integrated with 6,000 MWh of battery energy storage for 25 years.

The proposal also includes 2,000 MW of renewable energy round-the-clock power for 25 years, integrated with an appropriate energy storage system, and 2,000 MWh of peak firm and dispatchable renewable energy capacity, comprising 500 MW for 4 hours, for 15 years. The Discoms said the projects would address deficit periods, shift renewable power to peak hours and reduce dependence on expensive short-term market purchases.

SECI said demand aggregation across states and its payment security mechanism had supported wider bidder participation and competitive tariff discovery. It cited tariffs of Rs. 2.86 to Rs. 2.87 per kWh for solar power with 4 hours of storage and Rs. 3.12 to Rs. 3.13 per kWh for solar power with 6 hours of storage. SECI said it could float a fresh tender based on the Discoms’ specifications if they consented to the procurement model.

Bharat Rashtra Samithi leader and former energy minister G Jagadish Reddy questioned the proposal to purchase an additional 7,800 MW of thermal, solar and hybrid power. He alleged that existing supply was being disrupted despite 27,000 MW of available capacity and urged the ERC to reject purchases that could raise tariffs and true-up charges. The ERC said the procurement option serving the interests of the state and consumers would be considered.

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