Generation Roundup

Well positioned to meet the state’s power needs

At the time of the formation of Telangana state in 2014, the government had accorded utmost priority and importance to the power sector, with a focus on augmenting capacity and ensuring uninterrupted power supply. With a capacity addition of over 4,000 MW since then, the state currently has an installed capacity of 11,501 MW (including allocations from central generating stations [CGSs] and independent power producer [IPP] plants), thereby successfully meeting the energy needs of the state.

Installed capacity

On the bifurcation of the state into Andhra Pradesh and Telangana, the existing power stations were divided between the two based on the location of power plants (AP Reorganisation Act, 2014). It was also decided that the existing power purchase agreements (PPAs) with the discoms would continue for both operating as well as under-construction projects. Accordingly, Telangana was allocated a share of 53.89 per cent in the power capacity as per the order of the then Government of Andhra Pradesh (GO Ms No.20, dated May 8, 2014).

This allocation has been a point of contention between the two states since then. It is only after the expiry of the existing PPAs that 100 per cent of the respective capacities will be available to each of the two states. The total contracted capacity at the time of the bifurcation was 8,805 MW. Of this, PPAs for 6,549 MW are due to expire in March 2019.

As of May 2017, the total installed capacity in Telangana stood at 11,501 MW. Coal-based power accounts for the majority of the capacity with 62 per cent share (7,150 MW), followed by hydropower with 20 per cent (2,306 MW) and renewable energy-based power with 14 per cent (1,545 MW) share. Gas and nuclear power constitute about 3 per cent and 1 per cent of the total capacity respectively. About 55 per cent of the capacity is owned by the state sector, 27 per cent by the private sector and 18 per cent by the central sector.

The key player in the generation segment is Telangana State Power Generation Company Limited (TSGENCO), which owns and operates about 5,235 MW of capacity (2,882.5 MW of thermal, 2,252 MW of hydro and 1 MW of solar). The thermal capacity comprises four plants – the Kakatiya thermal power station (TPS), the Kothagudem TPS (ABC), the Kothagudem TPS (V and VI) and the Ramagundam-B TPS. In the hydro segment, the company owns 11 plants, of which four – Srisailam Left Bank (900 MW), Nagarjunasagar (815 MW), Lower Jurala (240 MW) and Priyadarshini Jurala (234 MW) – plants account for over 97 per cent of the total hydro capacity.

With respect to the private sector, the state has allocations for various IPP projects including Lanco’s Kondapalli plant, GVK’s Jegurupadu plant and Thermal Powertech’s Krishnapatnam power plant. The state also has a long-term MoU with Chhattisgarh for the supply of 2,000 MW of capacity.

Apart from these, the other major plants in the state include Singareni Collieries Company Limited’s 1,200 MW Singareni thermal power plant (TPP) and NTPC’s 2,600 MW Ramagundam super thermal power station (STPS). The Singareni plant became operational last year, with Unit 1 being commissioned in March 2016 and Unit 2 in November 2016. The other recently commissioned projects include the 600 MW Unit 2 of the Kakatiya power plant and the 240 MW Jurala hydroelectric plant.

Generation performance

Coal-based power is the mainstay of Telangana’s power sector, accounting for over 95 per cent of the state’s generation (including CGS allocations). In 2016-17, the total generation in the state stood at 43.39 BUs, recording a growth of 17.7 per cent over 2015-16. This was mainly due to the commissioning of the Singareni power plant, which generated over 4,000 MUs during the year. Of the total generation, 41.27 BUs came from coal-based power plants while hydro plants generated only about 2.1 BUs.

With respect to the plant load factor (PLF), Telangana’s plants have been among the best performing plants in the country. While the PLFs have declined for most plants in the state (as in other parts of the country), they have continued to be higher than the national average. In 2016-17, the PLF in the state stood at 77.69 per cent, significantly higher than the all-India PLF of 59.8 per cent. The Ramagundam-B TPS, Ramagundam STPS and the Singareni TPP recorded PLFs of more than 80 per cent.

Upcoming capacity

As per the Central Electricity Authority (CEA), around 3,500 MW of capacity is under construction in Telangana. This includes an 800 MW unit at the Kothagudem power plant, the 4×270 MW Bhadradri TPP and the 2×800 MW Telangana TPP (Phase I). The first two are being set up by TSGENCO and the third by NTPC Limited. The state also has significant renewable energy capacity addition plans. It has targeted to reach a total renewable energy capacity of 5 GW by 2019.

The Kothagudem unit is already under construction and is expected to become operational by August 2018. The Bhadradri plant has recently received approval from the Ministry of Environment, Forest and Climate Change, which had been pending for a long time. While all the units were initially expected to be commissioned by 2018, the delay in obtaining the clearance is likely to delay the commissioning as well. Meanwhile, construction work has started at the NTPC plant. The plant is expected to be ready and operational by July 2020. Apart from these, TSGENCO is also planning a 4,000 MW project at Damarcherla for which it has received approval from the expert appraisal committee.


With its current generating capacity and power procurement from other sources, Telangana is already able to meet its energy and peak requirements. With the commissioning of the under-construction capacity, the state is likely to have excess power supply. The CEA has estimated that the state will have an energy surplus of over 6 per cent in 2017-18  though it may face a deficit of about 900 MW (10 per cent of peak demand) in the peak power requirement.  However, with the commencement of supply from Chhattisgarh earlier this year, the deficit situation may not arise.

Overall, Telangana’s power generation segment is well positioned and, given its capacity addition plans, is set for steady growth in the coming years.


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