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)