Telangana braces for record surge in power demand due to industry, AI, EVs, data centres: Bhatti

Hyderabad: Declaring electricity as the backbone of Telangana’s future economy, Deputy Chief Minister Mallu Bhatti Vikramarka on Saturday said the State is preparing for an unprecedented surge in power demand driven by industrialisation, data centres, Artificial Intelligence, electric vehicles, urbanisation and modern agriculture.

He warned that peak power demand is projected to double in the next ten years, putting enormous pressure on existing infrastructure.

Addressing a press meet, he outlined the government’s long-term power roadmap aimed at achieving Telangana’s ambitious $3 trillion GDP target by 2047.

Telangana’s power demand fastest in India

The Deputy CM revealed that Telangana has recorded nearly 9.77 per cent compound annual growth in electricity demand during the last decade, one of the highest in the country.

He said national-level projections by the Central Electricity Authority (CEA) underestimate Telangana’s growth, whereas the State’s bottom-up demand estimates, based on urban expansion, data centres, EV penetration and irrigation needs, show an average annual demand growth of 8.5 per cent.

$3 trillion economy needs massive power expansion

Linking power growth with economic progress, the Deputy CM stated that Telangana’s $3 trillion GDP goal by 2047 requires 13 per cent annual economic growth and nearly 10 per cent annual power demand growth.

This would translate into an eight-fold increase in peak electricity demand by 2047, making capacity expansion unavoidable.

10-year power capacity addition plan launched

To meet future needs, the government has initiated a 10-year power capacity addition plan from FY 2025 to FY 2035. The plan focuses on strengthening grid reliability while supporting large-scale economic expansion across manufacturing, services and technology sectors.

Green energy is at the core of the power strategy

Renewable energy will remain a central pillar of Telangana’s power policy. The State will significantly step up solar, wind and hydel capacity to reduce dependence on fossil fuels, lower long-term power costs, and support climate sustainability.

Legal obligation to meet renewable purchase targets

The Deputy CM pointed out that Telangana is legally bound by India’s Paris Agreement commitments through Renewable Purchase Obligation (RPO) targets. Under the Ministry of Power notification S.O. 4421(E) dated September 27, 2025, non-compliance will now attract penalties, making faster renewable adoption mandatory.

Solar procurement planned with long-term vision

Since solar projects require at least three years of lead time, the State is preparing procurement well in advance. Power will be sourced through a mix of government-owned solar assets and private Power Purchase Agreements (PPAs).

Energy storage is essential for round-the-clock power

Highlighting the challenge of intermittency, the Deputy CM said that cheap solar power will go to waste without storage solutions. Telangana will adopt both Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP) to ensure a round-the-clock (RTC) power supply.

He noted that PSPs typically take 5–6 years to complete, citing projects such as the Greenko Pinnapuram PSP, and said procurement will be through storage-as-a-service, GENCO and PPP models.

Thermal power needed to avoid grid collapse

Stressing that renewables alone cannot stabilise the grid, the Deputy CM said thermal power remains essential to prevent large-scale blackouts. He warned that without a strong baseload, Telangana could face a crisis similar to the Spain-Portugal blackout of April 2025.

Grid failure could cost Rs 2,000 crore per day

A statewide grid collapse would result in an economic loss of Rs 1,500–2,000 crore per day, besides disrupting essential services such as hospitals, defence installations, transport systems, telecom networks and data centres, he said.

5,000–6,000 MW thermal addition necessary

To maintain grid stability and support national energy targets, Telangana must add 5,000–6,000 MW of new thermal capacity, the Deputy CM asserted. He described the proposed Ramagundam thermal expansion as a strategic and indispensable project for the State’s energy security.

Wind power to be expanded in a phased manner

The Deputy CM also revealed that Telangana has an estimated 25 GW wind potential at 120-metre hub height. Wind capacity will be expanded gradually as part of a diversified and balanced energy mix.