HYDERABAD: Asserting that Telangana will add 5,000–6,000 MW of new thermal capacity, Deputy Chief Minister Mallu Bhatti Vikramarka made it clear that this was essential for the state’s energy security and for meeting national targets.
He said the Ramagundam thermal project was a strategic requirement, stating: “Renewables alone cannot stabilise the grid. Without a firm baseload, Telangana faces the risk of a Spain–Portugal-type blackout seen in April 2025. A grid collapse here would trigger daily losses of Rs 1,500–2,000 crore and disrupt hospitals, defence, transport, telecom and data centres.”
Rejecting the allegation by former minister and BRS leader T Harish Rao that the state government was planning a Rs 50,000-crore scam through new thermal plants, Vikramarka said the estimates themselves do not cross Rs 50,000 crore and remain at the proposal stage. “If the plan has not progressed beyond proposals, how does a scam enter the picture?” Vikramarka asked.
On Saturday, the deputy chief minister, along with Ministers D Sridhar Babu and Ponnam Prabhakar, presented the rationale behind the Cabinet’s decision to pursue new thermal capacity.
Peak demand to double in 10 years: Bhatti
Vikramarka said electricity remained central to the state’s economic expansion, influencing industry, services, AI and data infrastructure, and modern agriculture. Telangana’s electricity demand recorded 9.77% CAGR over the past decade, and peak demand is projected to double within the next ten years, he pointed out.
The deputy chief minister said national projections underestimated the state’s trajectory, while Telangana’s own assessment, considering urban growth, data centres, EV adoption and irrigation indicated about 8.5% annual demand growth.
Vikramarka said that Telangana’s target of reaching a $3-trillion economy by 2047 required 13% annual economic growth and around 10% annual power demand growth, implying an eight-fold rise in peak demand by 2047.
The government has begun a 10-year capacity addition plan from FY25 to FY35. “To meet national requirements and keep the grid stable, Telangana must add 5,000–6,000 MW of thermal capacity. This is the basis for the Ramagundam proposal,” Vikramarka explained.
He said wind capacity would be expanded gradually, with 25 GW potential available at a 120-metre hub height. Pumped storage would also be encouraged, and solar, wind and hydel additions would continue to reduce long-term fossil dependence.
The deputy CM pointed out that India’s Paris Agreement commitments applied to Telangana through Renewable Purchase Obligations, which now carry penalties for non-compliance. Telangana therefore has to scale up renewable procurement and storage beyond national timelines, he said. Solar procurement, Vikramarka said, was being planned three years ahead through a mix of government-built assets and private PPAs.
“CEA projections show Telangana may face a 243-million-unit deficit by 2029–30 and will need 7,366 MW of storage. Solar purchases involve 25-year agreements; without timely expansion, the state will face constraints,” Bhatti said. Telangana, he noted, has scope for pumped storage at 12 locations.
Vikramarka said the Yadadri project’s distance from coal mines increased transport and production costs. New thermal plants would therefore be located near coal mines, with the project awarded to NTPC or GENCO based on the lower cost.