Telangana is set to become one of the hot spots for solar energy development in the country, led by State’s target of solar photovoltaic power generation capacity of 5,000 MW by 2018-19. The state has a vast solar potential with average insulation (amount of solar radiation reaching the earth surface) of nearly 5.5 kWh/m2 for 300 sunshine days.
By the end of December 2016, Telangana had installed a total solar capacity of 1070 MW, with 918 MW of utility scale solar projects and 27 MW of rooftop solar projects. Projects with generation capacity of 2500 MW are in pipeline with number of solar power developers engaged in building projects.
In line with JNNSM, Government of India has made mandatory for every state to generate 5% of its need from clean energy to avail electricity from Central generation stations and other benefits from the Centre.
Under Telangana Solar Power Policy 2015, which will be valid for the next five years, Telangana state government aims at creating an enabling environment for prospective solar power developers to harness substantial quantum of solar power in optimum manner.
The policy provides various incentives to the developers which include a single window and speedy clearance to all solar projects, exemption from the Land Ceiling Act, deemed conversion to non-agricultural land status for the land acquired for the project, 100% refund on value added tax (VAT) , refund on stamp duty, exemption from electricity wheeling charges and consent from the state pollution control board within seven days.
However, solar project developers face the same hurdle as Independent Power Producer inability to sell power and delays in grid connection despite agreements with cash strapped distribution companies.
Ajay Mishra, IAS, Special Chief Secretary, Department of Energy, Government of Telangana agreed to look into making pollution control certificates such as CTE and CTO as “Deemed Approved” since solar energy is categorized in green category.
He also mentioned that easing on various other approval processes from local revenue departments simple and hassle free as part of ease of doing business in Telangana.
He also talked about scaling up of Roof top projects which will be financially viable. Telangana State may also look at making Telangana State an Industrial hub for manufacturing of solar equipments with an enabling policy of supply of solar power making it an Integrated Solar Park.
