Telangana Approves Phased Competitive Bidding for 3 GW Solar Power

The Telangana government has issued a major directive approving the procurement of 3 GW of solar power over the next five years as part of the state’s aggressive push towards renewable energy integration.

This initiative is designed to meet the Renewable Consumption Obligation (RCO) as set forth under the Telangana Clean and Green Energy Policy, 2025, and will be executed through a competitive bidding process administered by the Telangana Green Power Procurement Coordination Committee (TGPPCC).​

Policy Decision and Objectives

State authorities noted a significant shortfall in meeting RCO targets, with analysis indicating a requirement for an additional 12,000 MW of renewable capacity by 2030.

In response, the Vice Chairman and Managing Director of TGREDCO recommended the phased procurement of 5000 MW solar power, leading to government approval of a first tranche of 3000 MW. The procurement aims to ensure reliable, cost-effective electricity supply, promote carbon reduction, and support sustainable economic growth in line with national and state-level commitments.​

Procurement Structure and Timeline

The approved solar procurement will occur in three distinct phases: 1000 MW by June 2026, 1000 MW by December 2026, and 1000 MW by June 2027.

TGREDCO is authorized to facilitate the bidding and acquisition process via the Inter-State Transmission System (ISTS) and Intra-State Transmission System (InSTS), ensuring technical and commercial superiority. Coordination with DISCOMs will be key, while SBI Capital Markets Limited (SBICAPS) will act as a consultant given their expertise in power sector transactions.​

Senior energy department officials, including the Vice Chairman and Managing Directors of TGREDCO and state DISCOMs, have been tasked to advance the procurement effort. The policy order, issued in the name of the Governor of Telangana, ensures high-level oversight, with directives circulated to all relevant power bodies and government officials.