| Work Detail |
The Telangana Electricity Regulatory Commission (TGERC) passed an order on April 22, 2025, regarding a petition filed by the Southern and Northern Power Distribution Companies of Telangana (TGDISCOMs). The petition sought approval for the procurement of 4,000 MW of decentralized ground-mounted grid-connected solar power under Component-A of the PM-KUSUM Scheme for 25 years from the date of commercial operation. This scheme, launched by the Ministry of New and Renewable Energy (MNRE), aims to support farmers, reduce dependence on fossil fuels, and increase solar energy share. The commission reviewed the petition and various stakeholder submissions, including suggestions and objections raised during a public hearing held on April 17, 2025. A key concern raised was that the MNRE had initially approved 4000 MW for Telangana but later revised it to 1000 MW. TGDISCOMs stated that the state government was actively pursuing MNRE to restore the full 4000 MW allocation. Some stakeholders argued that the land availability and practical challenges of implementing the scheme through Self-Help Groups (SHGs) and small farmer associations needed to be addressed more thoroughly. They suggested a phased implementation approach. The Commission acknowledged these challenges and directed TGDISCOMs to study successful models from other states for better implementation. The Commission also examined energy demand projections. It was found that Telangana is expected to face an energy deficit from FY 2028 onwards despite temporary annual surpluses. The proposed solar power projects under the scheme would help address day-time agricultural load and meet peak demands without relying heavily on short-term market purchases. Furthermore, TGDISCOMs emphasized the importance of the scheme for complying with Renewable Purchase Obligation (RPO) targets set by the Ministry of Power. Non-compliance could result in penalties of ?3.72 per unit. They also highlighted that the proposed tariff of ?3.13 per kWh is lower than the average power purchase cost of ?5.15 per kWh, thus helping reduce overall costs. Some stakeholders argued that the ?3.13 per kWh tariff, fixed in 2021, was outdated and needed revision due to changes in market conditions, inflation, and currency rates. Others cited examples from Rajasthan, suggesting a higher tariff could be justified based on solar irradiation differences. However, the Commission decided not to revise the tariff, noting that the Expression of Interest had already been invited based on this rate and changes might disrupt the process. Concerns were also raised about the capacity utilization factor (CUF) set at 19%, which stakeholders felt was too high for Telangana’s solar conditions. They requested a more achievable CUF target or flexible penalties. The Commission directed TGDISCOMs to consider these points and ensure proper grid integration and infrastructure planning. The Commission granted approval for the procurement of 4,000 MW solar power and the associated Power Purchase Agreements while denying post-facto approval for the Expression of Interest and the Model Lease Agreement. It emphasized that DISCOMs should ensure financial prudence, proper implementation, and safeguarding of consumer interests during the execution of the scheme. |
