Telangana Government has decided to shift from conventional energy to renewable energy sources to meet the emerging power requirements of the State.
It has decided to rely on solar and pumped storage plants for its future requirements. A decision was taken to been decided to opt for 3,000 MW of solar energy, and the State Council of Ministers — which met in Hyderabad on Tuesday (November 25, 2025) under the chairmanship of Chief Minister A. Revanth Reddy — gave its consent for signing the power purchase agreement for a period of five years in this direction.
The Cabinet has also approved the utilisation of 2,000 MW pumped storage energy in the coming days and directed the officials to call for tenders in this direction soon. The more than four-hour-long meeting focused primarily on energy-related issues to ensure that there was no interruption in power supply in the coming days.
Officials are understood to have made a PowerPoint presentation on the emerging requirements in the power sector at least for the next ten years. Accordingly, it was decided to promote a healthy mix of conventional and renewable sources to cater to the ever-increasing demand in the State. “The State has several locations suitable for establishing pumped storage units. The Cabinet has decided to approve the proposals made by entrepreneurs willing to set up units here,” IT and Industries Minister D. Sridhar Babu said while speaking to media.
The companies coming forward to set up pumped storage plants would be provided with land and water, with a precondition that all the power generated through these plants should be sold to the State run distribution companies.
Captive generation permission for new units
In a major policy decision, the State Cabinet has decided to give permission to new industrial units to opt for captive power generation — to produce own electricity — to meet their requirements. There would be no maximum limit for such captive generation by the new units. Power supply to the existing units would continue as usual under the old system.
800 MW thermal plant at Ramagundam with NTPC
The Minister said that the Cabinet had discussed the proposal for setting up an 800 MW thermal power plant at Ramagundam in place of the existing plant. It was decided to set up similar plants at Paloncha and other locations in association with the NTPC. “ TG Genco will finalise the developers (NTPC or TG GENC0) for these projects based on the costs at which they offer power,” he said.
The unit at Ramagundam, presently a sub critical technology one, would be converted into super critical technology coal based pithead plant. The decision was taken after a thorough assessment of requirement of thermal capacity in the coming days. “This Discom has been proposed after assessing all factors to provide systematised supply. It is also aimed at ensuring healthy growth of the Discoms,” he said.
Replying to queries, Mr. Sridhar Babu said there was no proposal with the Government to hike power tariffs at present. “We have not received any such proposals from the Discoms,” he said.
The Cabinet gave its consent for setting up an exclusive power distribution company in addition to the northern and southern power distribution companies, dealing with with free power to farm sector.
Published – November 25, 2025 06:11 pm IST
