The Telangana government has introduced a draft renewable energy policy with a goal to achieve 51 GW of renewable energy capacity by FY 2035. The Telangana Renewable Energy Policy-2024 aims to establish approximately 34 GW of solar capacity, including grid-scale, floating, and distributed solar, 4.5 GW of wind capacity, 2.5 GW from hydropower, and 10 GW from energy storage solutions, including battery energy storage systems (BESS) and pumped storage.

The policy also emphasises promoting the production of green hydrogen and its derivatives. Designated nodal agencies for project implementation include the Telangana Renewable Energy Development Corporation, Telangana Power Generation Corporation, DISCOMs, and Telangana TRANSCO.

Projects must be completed within two years of receiving capacity allocation or a power purchase agreement. In cases of delay, a one-year extension may be granted by encashing the performance bank guarantee (PBG), with a further extension possible under similar conditions. Uncompleted projects beyond the two-year period will be cancelled.

For government land used in renewable energy projects, a nominal lease fee of 10% of market value per annum will apply, with a 5% escalation every two years. The district collector will oversee the lease agreements upon project commissioning. Technical feasibility for projects will be assessed by Telangana TRANSCO/DISCOMs within 30 days of application.

The policy also includes provisions for solar projects led by women's self-help groups, rooftop solar installations on government school buildings, and floating solar projects on water bodies managed by public sector undertakings. Wind and pumped storage projects have specific timelines and land use policies, including a 45-year lease for government land and nominal charges for private land.

Electric vehicle (EV) charging stations will be developed under a public-private partnership model, integrating renewable energy supply. New commercial developments and residential areas exceeding 5,000 sq. meters will be required to install charging stations.

The state offers incentives for private agricultural land conversion to non-agricultural land for renewable energy projects, along with various reimbursement schemes for project development, including 100% reimbursement of SGST for equipment, incentives for micro and small enterprises, and interest subsidies on loans.

The Telangana government also plans to become a leader in green hydrogen production, offering substantial capital subsidies for green hydrogen projects, electrolyser manufacturing, and hydrogen refuelling stations. Additional incentives include exemptions on electricity duty, transmission charges, and cross-subsidy surcharges for green hydrogen projects.

This comprehensive policy positions Telangana as a key player in India’s renewable energy and green hydrogen sectors, driving significant growth and innovation in the industry.

(Mercom)