Telangana Seeks Central Funds to Triple Renewable Capacity

Telangana could benefit from the Union Cabinet-approved Green Energy Corridor Phase-III scheme if its proposed transmission and battery-storage projects are cleared. The state aims to increase renewable-energy capacity from 10,642 MW in 2025-26 to 29,645 MW by 2029-30, according to the proposals submitted to the Central Electricity Authority.

Telangana is among 13 states seeking participation in the programme, which is designed to strengthen intra-state transmission networks for evacuating renewable power. It also provides for Battery Energy Storage Systems, or BESS, to manage intermittency, congestion and peak-hour demand.

The state Cabinet has approved about 7,800 MW of additional generation and storage capacity, comprising 3,000 MW of solar, 4,000 MW of BESS and 800 MW of wind capacity. The energy department and TG Transco will need to identify existing and proposed solar, wind, pumped-storage and hybrid-generation clusters, along with expected additions and grid-injection points, before submitting detailed proposals to the Centre.

The scheme could help Telangana integrate more variable renewable generation and evacuate electricity from generation clusters to industrial and consumption centres. It may also support Hyderabad’s expanding data-centre and information-technology demand by improving grid flexibility during non-solar hours, while BESS units could be deployed at renewable developers’ sites or other critical grid locations to stabilise supply during evening peaks.

Potential benefits include faster renewable-capacity addition, improved reliability for industries and households, and opportunities for transmission and storage developers. Competitive bidding could attract private investment in transmission infrastructure, while construction, manufacturing, operations and grid-management activities could generate employment.

Nationally, the third phase is expected to facilitate the evacuation of up to 135 GW of renewable energy and deployment of 50 GWh of BESS by 2032-33. The scheme has an outlay of Rs. 1.86 tn, including Rs. 1.36 tn for intra-state transmission systems and Rs. 500 bn for battery storage, with Rs. 540.82 bn earmarked as Central Financial Assistance. The Centre has linked the programme to India’s target of 900 GW of installed non-fossil capacity by 2035.

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