Telangana Targets 20 GW Renewable Energy Expansion by 2030
POWER & RENEWABLE ENERGY

Telangana Targets 20 GW Renewable Energy Expansion by 2030

Telangana has finalised its 2025 renewable energy policy, aiming to add 20,000 MW of renewable energy and storage capacity by 2030. The policy will remain in effect until 2035. The state has set ambitious targets of 30.54 GW of renewable energy capacity by FY 2030 and 47.06 GW by FY 2035, covering solar, wind, energy storage, and distributed sources. Additionally, Telangana plans to install 6,000 electric vehicle charging stations (EVCS) by 2030 and 12,000 by 2035, along with producing 418 KTPA of green hydrogen by FY 2030 and 554 KTPA by FY 2035. 

The policy includes incentives for solar, wind, pumped storage, battery energy storage systems (BESS), hybrid renewable projects, and round-the-clock renewable power. Telangana Power Generation Corporation and Telangana Renewable Energy Development Corporation (TGGENCO/TGREDCO) will serve as nodal agencies, handling project registration, capacity allocation, land allotment, power evacuation approvals, tender invitations, and regulatory coordination. The state will also establish an incubation centre with Rs 500 million in funds to support innovation in renewable energy. 

For solar projects, open access, captive, or group-captive developers must finalise agreements within two months of allocation and complete projects within two years. Floating solar projects will be developed on identified reservoirs, with a one-time lease of Rs 100,000 per acre for non-DISCOM projects. Decentralised solar projects of 500 kW to 2 MW will be eligible for DISCOM purchase under state-set tariffs. Incentives include exemptions from the Land Ceiling Act, reduced water charges, land and electricity duty exemptions, and pollution control board clearance waivers. Developers can also receive up to 100% reimbursement on SGST for certain projects and a 25% capital subsidy capped at Rs 300 million per manufacturing facility. 

Wind power projects will undergo repowering, with DISCOMs required to compensate developers for historical generation averages if PPAs are in place. These projects will receive the same incentives as solar projects, including SGST reimbursements and capital subsidies for women-led MSEs. 

For pumped storage projects (PSP), state and central PSUs or joint ventures will lead development, with the government leasing land for 45 years. Private PSP projects must be commissioned within six years, while DISCOM-related projects will follow PPA deadlines. Incentives include SGST reimbursements, waived local development fund contributions, and reduced water cess costs. 

Battery energy storage systems (BESS) must be commissioned within one year of allocation, with TGTRANSCO and TGDISCOM identifying land near substations. Incentives include SGST reimbursements, capital subsidies, and support for battery recycling projects. 

Hybrid renewable projects will be promoted to optimise infrastructure use, with additional transmission charges waived for repurposed projects. EV charging stations will be developed through public-private partnerships, with designated locations and minimum tariffs set at Rs 1/kWh. Buildings exceeding 5,000 sqm must install EV chargers. 

The state has also introduced a 30% capital subsidy, capped at Rs 10 million/MW, for green hydrogen and derivatives projects, including aviation fuel. Hydrogen refueling stations will receive capital subsidies of up to Rs 300 million per station and full SGST reimbursement for machinery purchases. The first five manufacturing plants with at least 500 MW of electrolyzer capacity annually will also be eligible for subsidies. 

With this policy, Telangana aims to establish itself as a leader in renewable energy, accelerating clean energy adoption and fostering economic growth through incentives and infrastructure support. 

(mercom)        

Telangana has finalised its 2025 renewable energy policy, aiming to add 20,000 MW of renewable energy and storage capacity by 2030. The policy will remain in effect until 2035. The state has set ambitious targets of 30.54 GW of renewable energy capacity by FY 2030 and 47.06 GW by FY 2035, covering solar, wind, energy storage, and distributed sources. Additionally, Telangana plans to install 6,000 electric vehicle charging stations (EVCS) by 2030 and 12,000 by 2035, along with producing 418 KTPA of green hydrogen by FY 2030 and 554 KTPA by FY 2035. The policy includes incentives for solar, wind, pumped storage, battery energy storage systems (BESS), hybrid renewable projects, and round-the-clock renewable power. Telangana Power Generation Corporation and Telangana Renewable Energy Development Corporation (TGGENCO/TGREDCO) will serve as nodal agencies, handling project registration, capacity allocation, land allotment, power evacuation approvals, tender invitations, and regulatory coordination. The state will also establish an incubation centre with Rs 500 million in funds to support innovation in renewable energy. For solar projects, open access, captive, or group-captive developers must finalise agreements within two months of allocation and complete projects within two years. Floating solar projects will be developed on identified reservoirs, with a one-time lease of Rs 100,000 per acre for non-DISCOM projects. Decentralised solar projects of 500 kW to 2 MW will be eligible for DISCOM purchase under state-set tariffs. Incentives include exemptions from the Land Ceiling Act, reduced water charges, land and electricity duty exemptions, and pollution control board clearance waivers. Developers can also receive up to 100% reimbursement on SGST for certain projects and a 25% capital subsidy capped at Rs 300 million per manufacturing facility. Wind power projects will undergo repowering, with DISCOMs required to compensate developers for historical generation averages if PPAs are in place. These projects will receive the same incentives as solar projects, including SGST reimbursements and capital subsidies for women-led MSEs. For pumped storage projects (PSP), state and central PSUs or joint ventures will lead development, with the government leasing land for 45 years. Private PSP projects must be commissioned within six years, while DISCOM-related projects will follow PPA deadlines. Incentives include SGST reimbursements, waived local development fund contributions, and reduced water cess costs. Battery energy storage systems (BESS) must be commissioned within one year of allocation, with TGTRANSCO and TGDISCOM identifying land near substations. Incentives include SGST reimbursements, capital subsidies, and support for battery recycling projects. Hybrid renewable projects will be promoted to optimise infrastructure use, with additional transmission charges waived for repurposed projects. EV charging stations will be developed through public-private partnerships, with designated locations and minimum tariffs set at Rs 1/kWh. Buildings exceeding 5,000 sqm must install EV chargers. The state has also introduced a 30% capital subsidy, capped at Rs 10 million/MW, for green hydrogen and derivatives projects, including aviation fuel. Hydrogen refueling stations will receive capital subsidies of up to Rs 300 million per station and full SGST reimbursement for machinery purchases. The first five manufacturing plants with at least 500 MW of electrolyzer capacity annually will also be eligible for subsidies. With this policy, Telangana aims to establish itself as a leader in renewable energy, accelerating clean energy adoption and fostering economic growth through incentives and infrastructure support. (mercom)        

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code