Telangana unveils 10 years power capacity expansion plan

Hyderabad: Telangana has projected requirement of around 65,000 MW electricity by year 2035 with the current rate of growth. State deputy chief minister, Mallu Bhatti Vikramarka said that for Telangana to grow into a 3-trillion-dollar economy by 2047 a target set by the Congress government, the GSDP must grow at 13% annually. For such GSDP expansion, electricity consumption must increase by at least 10% every year. Based on these calculations, Telangana will need over 1,39,310 MW of power capacity by 2047. While this is the projected requirement, the State’s current installed power generation capacity stands at 27,769 MW.

“Electricity is the backbone of Telangana’s economic growth — industries, services, AI/data infrastructure, and modern agriculture all depend on reliable and affordable power for employment and development. Telangana is among the Indian states with the fastest-growing electricity demand with a decade-long average annual growth rate (CAGR) of about 9.77%. Peak demand is expected to double over the next decade,” Bhatti Vikramarka told reporters on Saturday.

In a presentation on electricity requirements on Saturday, Vikramarka said the national Central Electricity Authority (CEA) projections do not accurately reflect Telangana’s real growth. Considering factors like urbanization, data centers, electric vehicles, and irrigation needs, the state’s own bottom-up estimates indicate an annual power demand growth of about 8.5%. To achieve the $3 trillion GSDP target by 2047, Telangana’s economy must grow at 13% annually, and electricity demand must rise by around 10% per year — implying an eightfold increase in peak power demand by 2047. Large-scale capacity expansion is inevitably essential both for reliable supply and sustained economic growth. Hence, the state has launched a 10-year power capacity expansion plan for FY25–FY35, he said.

Adding that green energy is the key pillar, he said Telangana aims to massively expand solar, wind, and hydel capacity to reduce dependence on fossil fuels, cut long-term costs, and advance climate stability.

India’s Paris Agreement commitments translate into Renewable Purchase Obligation (RPO) targets for all states. Under the Ministry of Power’s notification S.O. 4421(E) non-compliance with RPO norms will now attract penalties. To meet RPO targets, Telangana must scale up renewable energy procurement and storage capacity well ahead of CEA timelines.

The state is making advance arrangements for solar power procurement which requires a lead time of about three years through a combination of government-built solar plants and private-sector PPAs. Energy storage is critical to ensure round-the-clock (RTC) power; without it, inexpensive solar energy will go to waste. Telangana will therefore adopt both Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP). PSPs typically take 5–6 years to complete — such as the Greenko project in Pinnapuram in Andhra Pradesh. Procurement will follow Storage-as-a-Service, GENCO, or PPP models. 

“Thermal power remains vital to grid stability. Renewables alone cannot ensure reliability. Without baseload capacity, Telangana risks grid failures similar to the April 2025 blackout in Spain–Portugal. A grid collapse in Telangana could cause daily losses of Rs 1,500– Rs2,000 crore — severely impacting hospitals, defense, transport, telecom, and data centers. To align with national goals and ensure grid reliability, Telangana must add 5,000–6,000 MW of thermal capacity. The proposed Ramagundam thermal expansion is therefore strategically crucial,” he added.

Vikramarka also added that wind energy will also be expanded in phases and Telangana has an estimated 25 GW wind potential at 120-meter hub height, and plans are in motion to fully harness this resource in the future energy mix.