Hans News Service Hyderabad

Telanganais planning to promote solar, floating solar and other non-conventional energy sources on a large scale to meet the state’s rapidly rising electricity demand, Deputy Chief Minister Mallu Bhatti Vikramarka informed the Assembly on Thursday.

Replying to a question on floating solar sheets on water bodies during Question Hour, Bhatti said the Electricity and Irrigation departments were jointly studying the feasibility of setting up floating solar projects. A clear announcement on the plans would be made soon, he said.

The government is examining the prospects of installing floating solar plants on reservoirs of major and medium irrigation projects across the state. Nagarjuna Sagar, Srisailam, Pulichintala, Sriramsagar, Sripada Yellampalli, Devadula, Komaram Bheem, Paleru, Wyra, Mallanna Sagar, LMD, Mid Manair and Pocharam reservoirs are among those under consideration.

Bhatti said floating solar projects involved higher costs than conventional solar projects. Though the Centre had announced assistance of up to Rs 1 crore per MW under the Viability Gap Funding (VGF) model, certain challenges remained.

He said the Central mandate requiring domestically manufactured equipment imposed an additional cost burden of around Rs 1.30 crore per MW. Investor interest in floating solar projects could increase if the Centre relaxed these regulations, he added.

The Deputy CM said the state’s peak power demand had risen sharply from around 15,000 MW when the government assumed office in December 2023 to 19,000 MW on September 9. Industrial growth and increased purchasing power were among the factors driving the rise.

` 19,000-cr annual subsidy

Bhatti said the government spends around Rs 14,000 crore annually on free electricity for agricultural pump sets. The free power scheme covering up to 200 units benefits around 55 lakh families and costs another Rs 5,000 crore, taking the total annual electricity subsidy to nearly Rs 19,000 crore.