The Telangana Electricity Regulatory Commission (ERC) has been asked to consider the capacity addition plans of the state’s distribution companies. Solar Energy Corporation of India (SECI), a central government public sector undertaking under the Ministry of New and Renewable Energy, said in-principle approval should not confine the Discoms to a single procurement route.

The proposal was discussed at a public hearing conducted by the ERC in Hyderabad. The Discoms proposed procuring 800 MW of standalone wind generation for 25 years and 3,000 MW of solar capacity sanctioned under the Telangana Green Energy Policy, integrated with 6,000 MWh of battery energy storage systems (BESS), configured as 1,000 MW for six hours, for 25 years.

They also proposed 2,000 MW of renewable energy round-the-clock power for 25 years, integrated with an appropriate energy storage system, along with 2,000 MWh of peak firm dispatchable renewable energy capacity, configured as 500 MW for four hours, for 15 years. SECI said its tenders had previously discovered competitive tariffs of Rs. 2.86-2.87 per kWh for solar power with four hours of storage and Rs. 3.12-3.13 per kWh with six hours of storage.

SECI said it could conduct a fresh tender for the required capacity based on the Discoms’ specifications if the state consented to such procurement. It also urged the ERC to permit procurement through any suitable route, including Renewable Energy Implementing Agencies such as SECI, alongside TG Genco and TGREDCO, citing broader bidder participation, aggregated demand and payment security mechanisms.

The ERC said the Discoms intended to select the route that best addressed state demand and supply requirements, tariff competitiveness, total landed cost and reliability. BRS leader and former energy minister G Jagadish Reddy questioned the proposed purchase of an additional 7,800 MW, alleging that the government was unable to properly supply the 27,000 MW already available. He also cited power cuts and infrastructure gaps, while the Discoms said the renewable and BESS capacity would support deficit periods, shift supply to peak hours and reduce reliance on costly short-term market purchases.