Telangana to Tender for 1000 MW Solar Power in Next 2 Months

As part of its target to achieve 5000 MW solar power, the Telangana government will soon float tenders to produce 1000 MW of solar energy

As part of its target to achieve 5000 MW solar power, the Telangana government will float tenders in the next two months to produce 1000 MW of solar energy, a top official has said.

The state currently has 3,700 MW of solar power constituting about 25 percent of the commissioned capacity in the energy sector, Special Chief Secretary-Energy Ajay Mishra told the Sustainable Innovation Summit 2019.

“In the course of the next one to two months, we will be coming out with tenders for 1,000 megawatts more for solar installations in the state. So our immediate goal is in the next one and a half years we will have 5,000 MW,” he said.

The State-owned Singareni Collieries Company Limited (SCCL) was entrusted to install 300 MW solar power project which would take the total commissioned capacity to 5000 MW, he added.

Mishra said the state government had last year saved around 122 million units of electricity by containing transmission and distribution losses. It also saved Rs 500 crore in the capex in infrastructure creation for the 3,700 MW solar power projects.

The summit meet with the theme “Renewable Energy” is being organised by Indian Chamber of Commerce.

Earlier in August, we had reported that the state government wanted to go for one-time settlement of dues of panchayats and municipalities to state-run electricity organisations, and warned that henceforth heads of local bodies will be ‘punished’ for non-payment of bills on time.

Chief Minister K Chandrasekar Rao, who presided over a review meeting on the power sector, said the government will bear the expenditure for the supply of free power to farmers and for the lift irrigation projects and a special grant will be made in the budget for the purpose.

Rao suggested that solar power, available at a cheaper rate, should be procured to meet the heavy demand due to the Lift Irrigation schemes and asked the officials to invite tenders for 1000 MW of solar power. 

More recently, Indian rating agency CARE had revised its outlook to negative on the borrowing programs of 11 solar power producers. The agency did so due to delayed payment to the solar firms by distribution companies in Telangana for electricity purchased.