First such policy for the RE sector after the formation of the state

metro india news  I hyderabad

The Telangana Cabinet, under the leadership of Chief Minister A. Revanth Reddy has approved the Clean and Green Energy Policy 2025 to boost renewable energy production and address future electricity demands of the state.

The policy, aimed at inclusive development, environmental sustainability, and economic growth, sets a target to add 20,000 MW of renewable energy capacity by 2030.

With Telangana’s peak electricity demand projected to nearly double from 15,623 MW in 2024-25 to 31,809 MW by 2034-35, the Clean and Green Energy Policy 2025 ensures the state is well-prepared to meet future energy needs sustainably while fostering economic and social progress.

The policy is expected to attract investments of Rs 1.98 lakh crore and generate 1.14 lakh jobs over the next decade. By promoting floating solar, wind, green hydrogen, and hybrid projects alongside solar energy, the policy will reduce the state's pollution intensity by 33% in ten years.

Telangana’s climate, with 300 sunny days annually and strong wind potential, offers abundant opportunities for renewable energy generation. The government has committed to facilitating renewable energy projects through various incentives. Private and government lands will be made available for new power plants, with government land leased at nominal rents. 

Developers can sell power to DISCOMs or private entities through open access, ensuring flexibility.

Key initiatives include promoting floating solar projects on reservoirs through competitive bidding and nomination for central and state institutions. Rooftop solar projects will be encouraged in government schools, Indiramma houses, gram panchayat offices, and other government buildings.

Women’s self-help groups will also be supported in setting up solar plants ranging from 500 kW to 2 MW, with DISCOMs purchasing the electricity. The government has also emphasized technological advancement and innovation by proposing a special incubation center under the auspices of Transco or Diska to foster cutting-edge solutions in renewable energy.

Host of incentives on offer

The government has announced a series of incentives to promote renewable energy (RE) projects, including solar, wind, Battery Energy Storage Systems (BESS), and pumped storage projects, aiming to boost clean energy development and attract investments.

As part of these measures, land utilized for RE projects will be deemed non-agricultural status, and exemptions from the Land Ceiling Act will apply, allowing land acquisition beyond the usual limits up to 4 acres per MW or as revised with technological advancements.

To streamline project development, the nodal agency will assist developers in obtaining necessary clearances through TG-IPASS or other single-window systems. Additionally, the government will provide 100% reimbursement of stamp duty on land purchases for eligible projects.

Regulatory processes have been simplified further, with exemptions from obtaining NOCs or pollution control clearances from the Telangana Pollution Control Board for solar, wind, and BESS projects.

Developers of solar power projects will also benefit from the reimbursement of water charges. In support of Micro, Small, and Medium Enterprises (MSMEs), a 100% exemption from electricity duty will be provided for eight years for energy consumed from solar and wind projects.