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Telangana Electricity Regulatory Commission Approves 4,000 MW Solar Power Procurement under PM-KUSUM in Telangana Amid Stakeholder Concerns

The Telangana Electricity Regulatory Commission (TGERC) has approved the procurement of 4,000 MW of solar power and associated PPAs under Component-A of the PM-KUSUM scheme, despite various concerns raised during a public hearing held on April 17, 2025. This initiative is aimed at boosting decentralized solar deployment in the state over a 25-year period.

Stakeholders raised several issues, including the reduction in MNRE-approved capacity from 4,000 MW to 1,000 MW, challenges in land identification for substations, and the fixed tariff of Rs3.13/kWh, which they felt was unviable due to rising project costs and currency depreciation. Concerns were also voiced over the high CUF target of 19%, with suggestions for more flexible norms and penalties.

TGERC upheld the current tariff to maintain consistency and avoid disruption to ongoing projects. It directed TGREDCO and DISCOMs to publish standard operating procedures and FAQs to aid project developers and farmers. The Commission also called for coordination committees and single-window clearances to address implementation hurdles and support stakeholders.

The 4,000 MW approval aligns with Telangana’s strategy to meet projected energy deficits post-FY 2028 and ensures grid stability through better substation planning and reverse power flow management.