Telangana is expanding its power infrastructure through capacity addition, renewable energy, energy storage and digital transformation. Dr S. Harish, IAS, Chairman & Managing Director, Telangana Power Generation Corporation Limited (TGGENCO), speaks with Abhineet Kumar of Elets Technomedia, about the Corporation’s roadmap for generation expansion, thermal modernisation, energy storage, digitalisation and private sector participation.

Edited excerpts: 

TGGENCO operates one of India’s largest state-level generation portfolios. What is your strategic roadmap for balancing Telangana’s growing base load demand with the national commitment to net-zero by 2070?

TGGENCO, with a thermal generation capacity of 7,180 MW and a hydel capacity of 2,441.76 MW, is the third-largest state-owned power generation utility in the country. It presently meets around 35-40 per cent of Telangana’s average daily demand of nearly 252 million units (MU).

Since the formation of Telangana, TGGENCO has increased its installed capacity from 4,365 MW in 2014 to 9,622 MW in 2026, representing a 120 per cent increase. During the same period, the state’s peak demand has risen by 134 per cent, from 7,778 MW to 18,266 MW. Capacity addition has therefore remained aligned with the state’s growing energy requirements.

The Corporation’s long-term strategy is aligned with the Telangana Clean and Green Energy Policy, 2025, under which the state aims to add 20,000 MW of renewable energy and energy storage capacity by 2030, while contributing to India’s commitment to increase non-fossil fuel capacity.

As the designated nodal agency for implementing the policy, TGGENCO is leading the development of Pumped Storage Projects (PSPs). The Corporation has identified 29 potential PSP sites, of which seven projects, with a combined capacity of 6,640 MW, have completed Techno-Commercial Feasibility Reports and are progressing towards the Detailed Project Report stage.

TGGENCO is also implementing a 1,500 MWh Battery Energy Storage System (375 MW × 4 hours) at the Maheshwaram and Choutuppal substations of TGTRANSCO through Tariff-Based Competitive Bidding under the Power System Development Fund (PSDF) with Viability Gap Funding support. The project is being executed on a Build-Own-Operate (BOO) model.

To address immediate Renewable Purchase Obligation (RPO) requirements, the Corporation is evaluating the procurement of 500 MW with 6+2 hours of storage from an existing grid-connected pumped storage project under a Build-Own-Operate-Maintain (BOOM) arrangement for five years.

TGGENCO is also facilitating private investment in large-scale storage projects. During the World Economic Forum at Davos, Memoranda of Understanding were signed for 10,000 MW of pumped storage capacity. Subsequently, during the Telangana Rising Global Summit 2025, agreements were executed for an additional 11,460 MW of pumped storage capacity, and these proposals are currently under various stages of statutory clearance.

These initiatives are expected to strengthen grid reliability, improve energy security, facilitate renewable energy integration and reduce carbon emissions. Our objective is to ensure reliable, affordable and sustainable electricity for Telangana while supporting India’s long-term clean energy goals.

Telangana has ambitious renewable energy targets. How is TGGENCO positioning itself in the solar, wind and hybrid energy space, and what role do public-private partnerships play in accelerating this transition?

TGGENCO is expanding its renewable energy portfolio in line with the Telangana Clean and Green Energy Policy, 2025, while promoting greater private sector participation to accelerate project implementation.

The Corporation is developing 186.21 MW of solar capacity through ground-mounted, floating and rooftop projects across its power stations. Of this, 2.2 MW is under commissioning, 2.4 MW is under execution, 48.4 MW has reached the DPR and tendering stage, while another 133 MW is under planning with additional sites being identified.

The policy encourages private participation across solar, wind and hybrid energy projects for several reasons. First, large-scale renewable energy development requires substantial capital investment, and private participation enables faster capacity addition without placing additional pressure on public finances. Following the notification of the policy, Telangana secured investment commitments of nearly ₹29,000 crore.

Second, renewable power procurement through Tariff-Based Competitive Bidding promotes competition, improves efficiency and delivers affordable power to consumers while strengthening the financial sustainability of distribution utilities.

Third, private developers are able to execute projects within shorter timelines. The policy prescribes a commissioning period of two years from capacity allocation for open-access and captive projects, ensuring timely implementation.

The policy also supports Telangana’s industrial growth. Emerging industrial clusters such as AI City and Future City require reliable clean energy. Accordingly, the policy promotes Open Access, Captive and Group Captive projects, enabling industries to procure renewable power directly from private developers.

To facilitate investment, the Government has introduced several enabling measures, including single-window approvals, deemed land conversion, fiscal incentives and tax benefits, thereby improving project viability and investor confidence.

In its capacity as the nodal agency, TGGENCO is also promoting private investment in Pumped Storage Projects and Battery Energy Storage Systems through the MoU route. During the Telangana Rising Global Summit 2025, the Corporation signed agreements for over 11,460 MW of pumped storage projects involving proposed investments of around ₹95,150 crore. Several of these projects integrate pumped storage, solar generation and battery storage to provide round-the-clock clean power.

The combined approach of public sector leadership and private investment is expected to accelerate renewable energy deployment, strengthen energy security and support Telangana’s long-term clean energy objectives.

Thermal assets remain critical for grid stability. What modernisation and emission-reduction technologies is TGGENCO deploying across its coal-based plants to meet stricter environmental norms?

Thermal power remains essential for ensuring grid stability, frequency regulation and reserve support, particularly with the increasing integration of renewable energy. TGGENCO is therefore modernising its thermal fleet while enhancing operational flexibility and adopting advanced emission-control technologies in compliance with evolving environmental standards.

In accordance with the Central Electricity Authority (CEA) Gazette Notification dated 30 January 2023 on flexible operation of thermal power plants, all TGGENCO thermal units have achieved operation at 55 per cent Technical Minimum Load, except KTPS Stage V Units 9 and 10 (2 × 250 MW), which are equipped with ball-tube mills and will be upgraded following pilot studies and further CEA guidelines.

Subsequently, the CEA notification dated 15 December 2023 prescribed phased implementation of operation at 40 per cent Minimum Power Level. TGGENCO has already undertaken trial runs under the first phase. The trials have identified certain technical issues that are being addressed before sustained operation at this level.

Flexible operation of thermal units is critical for integrating renewable energy, as conventional plants continue to provide balancing support during fluctuations in solar and wind generation. Accordingly, TGGENCO is modernising its existing assets while maintaining system reliability.

As part of this programme, the Corporation retired the ageing 720 MW capacity at KTPS following the commissioning of the 800 MW supercritical unit at KTPS Stage VII, in line with the environmental clearance issued by the Ministry of Environment, Forest and Climate Change (MoEFCC). Similarly, the 62.5 MW units at Ramagundam, which had been in operation for more than five decades, were decommissioned in June 2024.

To comply with the latest environmental standards for particulate matter, sulphur dioxide, nitrogen oxides and mercury emissions, TGGENCO is implementing:

• Flue Gas Desulphurisation (FGD) systems to reduce sulphur dioxide emissions.
• Upgraded Electrostatic Precipitators (ESPs) to improve particulate matter collection efficiency.
• Ultra-supercritical technology in future generating units to improve thermal efficiency, reduce coal consumption and lower emissions.

These measures strengthen regulatory compliance, improve environmental performance and reduce the carbon intensity of thermal generation while ensuring reliable power supply for the state.

Energy storage and green hydrogen are being seen as game changers for state utilities. Does TGGENCO have any pilot projects or investment plans in these emerging areas?

Energy storage has become a key component of Telangana’s strategy for integrating renewable energy and improving grid reliability. TGGENCO is therefore implementing major storage projects while exploring emerging clean energy technologies.

The Corporation has finalised the Detailed Project Report (DPR) for the 1,500 MW Kalluru Pumped Storage Project, involving an estimated investment of ₹9,631.13 crore. The project will strengthen grid balancing, enhance energy storage capacity and facilitate higher renewable energy integration.

In parallel, TGGENCO continues to identify additional locations for pumped storage projects, renewable energy installations and battery energy storage systems to build a flexible and resilient power system.

The Corporation is also establishing a 1,500 MWh Battery Energy Storage System (BESS) at Maheshwaram and Choutuppal under a Build-Own-Operate-Maintain (BOOM) model in accordance with the Ministry of Power’s guidelines. Supported through Viability Gap Funding (VGF) under the Power System Development Fund (PSDF), the project will improve grid flexibility and support renewable energy integration.

To meet near-term system requirements, TGGENCO is procuring 500 MW of power from an existing pumped storage project under a BOOM arrangement, ensuring reliable dispatchable power during periods of peak demand.

While the Corporation’s immediate focus is on pumped storage and battery energy storage systems, these investments will also support the future deployment of emerging technologies, including green hydrogen, as Telangana advances its clean energy programme.

Workforce transformation is a major challenge as the power sector digitises. How is TGGENCO building internal capacity through AI, IoT-based plant monitoring and upskilling programmes to future-proof its operations?

Digital transformation has become an integral part of TGGENCO’s strategy to improve operational efficiency, optimise asset performance and build a future-ready workforce. Alongside the expansion of supercritical thermal units, renewable energy projects and energy storage infrastructure, the Corporation is strengthening its digital capabilities and investing in continuous skill development.

At the core of this transformation is TGSHAKTHI, TGGENCO’s Enterprise Resource Planning (ERP) platform built on SAP and recently upgraded from SAP ECC to SAP S/4HANA. The platform integrates operational, financial and administrative functions across generating stations and the corporate headquarters, enabling faster decision-making and improved resource management.

The digital ecosystem has been strengthened through biometric attendance, integration of captive coal mining operations into the ERP platform, and the digital life certificate facility for pensioners through the T-APP FOLIO application. Employees are regularly trained in key ERP modules, including Plant Maintenance, Materials Management, Project Systems, Human Resources, Financial Accounting and Business Intelligence, supporting the transition to data-driven operations.

To strengthen plant performance, TGGENCO has established a dedicated Digitalisation Wing under the Digital India initiative. The Corporation is deploying advanced automation through Distributed Control Systems (DCS), IoT-enabled field telemetry, SCADA and Distribution Management Systems for real-time monitoring, faster operational response and improved system reliability.

Predictive maintenance using SAP Plant Maintenance and Business Intelligence modules is enabling a shift from time-based maintenance to condition-based maintenance, improving plant availability and operational efficiency. TGGENCO is also evaluating emerging technologies such as IoT and blockchain to strengthen energy management and operational transparency.

The Corporation is in the process of introducing AI-based solutions for operation and maintenance of thermal power plants. These applications are expected to support predictive analytics, optimise plant performance, improve maintenance planning and minimise equipment failures.

Recognising that technology adoption must be supported by skilled manpower, TGGENCO has expanded its training programmes to prepare engineers and technical personnel for advanced technologies, including floating solar projects, pumped storage systems and Battery Energy Storage Systems (BESS). Continuous capacity-building programmes are also conducted in collaboration with the Central Electricity Authority (CEA), focusing on grid stability, supercritical technology, digital systems and safety.

Also Read: Australia – India Renewable Energy Cooperation: Building Skills, Technology and Green Industrial Partnerships

TGGENCO’s approach is to ensure that digital transformation and workforce development progress together, enabling the organisation to meet the operational requirements of an increasingly technology-driven power sector.

As CMD, what is your message to private-sector technology partners and investors looking to collaborate with Telangana’s energy sector at the India Energy Summit & Expo 2026?

Telangana has moved from policy formulation to implementation and today offers a favourable environment for clean energy investment. With a clear policy framework, strong institutional support and a growing pipeline of projects, the state presents significant opportunities for technology providers, developers and investors.

The state’s objective of adding 20,000 MW of renewable energy and energy storage capacity by 2030 creates opportunities across renewable generation, energy storage, grid infrastructure and digital technologies. The Telangana Clean and Green Energy Policy, 2025 provides a stable and investment-friendly framework through regulatory support, incentives and streamlined approvals for project developers and clean technology manufacturers.

TGGENCO is actively partnering with the private sector in the development of Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSPs) to strengthen grid flexibility and facilitate round-the-clock clean power. The state is also creating the necessary ecosystem for emerging sectors such as green hydrogen, which will support industrial decarbonisation and future mobility applications.

Digitalisation is another priority area. Telangana is modernising its power infrastructure through AI-enabled utility applications, advanced analytics, smart metering and intelligent grid technologies. Technology companies with expertise in these areas will find substantial opportunities for collaboration.

Telangana offers a transparent regulatory framework, efficient governance and a strong commitment to ease of doing business. Whether in renewable energy, storage, manufacturing or digital technologies, the state welcomes partnerships through public-private collaborations, joint ventures and pilot projects.

We invite investors, technology providers and industry partners to participate in Telangana’s energy transition and contribute to building a reliable, sustainable and future-ready power sector.

Let us collaborate at scale and co-author India’s energy transition story, right here in Hyderabad.

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