Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

Telangana Draft Renewable Energy Policy 2024: Aiming for 51 GW Capacity by FY 2035

The Telangana government has unveiled its Draft Renewable Energy Policy 2024, aiming to achieve an ambitious target of 51 GW renewable energy capacity by FY 2035. The policy sets detailed goals across various renewable sectors, including solar, wind, hydro, and energy storage systems.

Targets:

• Solar energy: ~34 GW, covering grid-scale, floating, and distributed solar systems.
• Wind energy: ~4.5 GW.
• Hydro energy: ~2.5 GW.
• Energy storage solutions: ~10 GW, including BESS and pumped storage projects.

Additionally, the policy emphasizes promoting green hydrogen production and its derivatives to position Telangana as a leader in this emerging sector.

Nodal Agencies for Implementation:

The Telangana Renewable Energy Development Corporation, along with designated departments such as Telangana Power Generation Corporation (GENCO), Transmission Corporation of Telangana (TRANSCO), and Telangana distribution companies (DISCOMs), will act as nodal agencies for project facilitation and execution.

Project Timelines and Extensions:

• Projects must be completed within two years from capacity allocation or signing of a power purchase agreement (PPA).
• A one-year extension is possible by encashing 50% of the Performance Bank Guarantee (PBG), with a second one-year extension by encashing an additional 50% of the PBG.
• Projects remaining uncommissioned after the two-year extension will be canceled.

Land Leasing and Feasibility:

• Government land will be leased at 10% of the market value per annum, with a 5% escalation every two years. Lease agreements will be managed by district collectors.
• TRANSCO/DISCOMs will process technical feasibility for projects within 30 days of receiving applications.
• An online portal will be established for solar project registration and single-window clearance.

Solar Projects:

The policy supports women’s self-help groups in setting up solar projects. DISCOMs will procure power based on tariffs set by the Telangana Electricity Regulatory Commission (TSERC). Developers must:

• Set up projects between 500 kW and 2 MW.
• Bear power evacuation and metering costs up to the DISCOM interconnection point.

Rooftop solar initiatives will pool rooftop space in government schools for industries to develop projects, providing a portion of free energy to schools.

Floating Solar Projects:

DISCOMs may issue tenders for floating solar power without legal restrictions. Water bodies may be allotted to state or central Public Sector Undertakings (PSUs) or joint ventures. Compensation to the irrigation department will be managed through energy shares or nominal leases.

Wind Energy:

Open access and captive wind projects must be completed within three years of capacity allocation.

Pumped Hydro Storage:

• Government land will be leased for 45 years at nominal rates.
• Private land acquisition will be managed by the nodal agency, leasing it to developers at Rs 1 per hectare per annum.
• The government retains the right to 30% of project capacity at state-regulated tariffs.

Battery Energy Storage (BESS):

BESS projects must be commissioned within one year of capacity allocation, with a similar PBG encashment-based extension system.

Electric Vehicle (EV) Charging Infrastructure:

• Public-private partnerships will develop EV charging stations integrated with renewable energy.
• DISCOMs will implement Time-of-Day (TOD) tariffs to promote daytime charging.
• A dedicated EV tariff category will include dynamic pricing.
• All new commercial complexes, housing societies, and townships above 5,000 sq. meters must install charging stations.

Incentives:

• Private agricultural land conversion for renewable energy projects is allowed.
• Supervision charges are waived for power sales to DISCOMs.
• 100% reimbursement of net State Goods and Services Tax (SGST) on equipment and materials.

Industrial Incentives:

• 15?pital reimbursement for micro and small enterprises (up to Rs 2 million).
• 100% reimbursement of stamp duty and 50% reimbursement of quality certification costs.
• Loan interest subsidies between 3% and 9% for five years.

Green Hydrogen Production:

Telangana aims to become a leader in green hydrogen production with incentives including:

• 25?pital subsidy (up to Rs 1 crore/MW) for electrolyzer projects.
• A focus on large-scale projects with a minimum capacity of 150 KTPA.
• 100% SGST reimbursement and transmission charge exemptions for five years.

Electrolyzer Manufacturing Incentives:

• 50% SGST reimbursement for five years.
• Power tariff reimbursement at Rs 1/kWh for five years.

Hydrogen Refueling Stations:

A 25?pital subsidy for hydrogen refueling infrastructure is available for the first ten units, alongside 100% SGST reimbursement for machinery.

By integrating robust policies, Telangana aims to create a renewable energy ecosystem that fosters sustainability, innovation, and economic growth, positioning itself as a key renewable energy hub in India.