The Telangana State Power Generation Corporation (TSGenco) may fall short of meeting the requirements of a generating company if the amendments to the Electricity Act, 2003, as tabled in the Lok Sabha during the previous session are carried out as they are.
As per the amendments, “any generating company establishing a coal and lignite-based thermal generating station after a date and in a manner to be notified shall be required to establish a Renewable Energy Generation capacity as prescribed by the Central government from time to time which shall not be less than ten per cent of the thermal power installed capacity.” While the TSGenco is all revved up to meet the deadlines set by the Chief Minister K. Chandrasekhar Rao with regard to its thermal power production, no solar /wind power project has been announced so far.
While the “date and manner” as specified under the amendment would assume clarity only after rules are framed, the total non-renewable energy projects owned by TSGenco as of now amount only to 1 MW.
On the thermal front, the company is given the mandate of setting up more than 8,000 MW of projects in Nalgonda and Khammam districts. The TSGenco has recently submitted Detailed Project Reports for 6,800 MW thermal projects to be set up at Damarcherla of Nalgonda, while LoI has been issued to BHEL for 800 MW unit at Kothagudem Thermal Power Station in Khammam. Four more units amounting to 1,080 MW are being set up by BHEL in Manuguru of Khammam.
Depending on the rules framed by the Centre, TSGenco might be required to add at least 800-900 MW of renewable power to make up for the 10 per cent.
However, the company still has ample time, as the gestation period for non-renewable energy projects is only between six months to one year. As per a recent report by Energy Task Force, the State has potential for 7,050 MW of non-conventional energy, 95 per cent of which can still be explored.