Telangana mulls floating solar projects to augment renewable energy

Mallu Bhatti Vikramarka, Deputy Chief Minister and Energy Minister of Andhra Pradesh | Photo Credit: KSL

As peak power demand in Telangana surged from 15,000 MW in December 2023 to 18,543 MW now, the State government plans to promote floating solar power and other non-conventional energy sources. Deputy Chief Minister and Energy Minister Mallu Bhatti Vikramarka said the Government is exploring options to set up floating solar plants on reservoirs of major and medium irrigation projects across the State.

Addressing the Assembly on Thursday, he said the Energy and Irrigation departments were jointly studying the possibility of setting up floating solar projects and that the government would decide soon.

Funding Challenges

Responding to questions raised by members during Question Hour, he said the government would explore setting up floating solar plants on reservoirs such as Nagarjuna Sagar, Srisailam, Pulichintala, Sri Ram Sagar, and Sripada Yellampalli.

Bhatti Vikramarka said floating solar projects involve higher costs compared with conventional solar projects. Although the Centre has announced a scheme to provide up to ₹1 crore per MW under Viability Gap Funding (VGF), he said the scheme has certain difficulties.

“The Centre’s condition that domestically manufactured equipment must be used would cause an additional burden of about ₹1.30 crore per MW, he explained. Relaxation of conditions like these would encourage greater interest among investors in floating solar projects,” he observed.

Despite the additional costs, the State government was making efforts to encourage investors and take the floating solar sector forward, he said.

He said that electricity consumption in the state had increased significantly over the last two years. It has risen to 18,543 MW currently, compared with 15,000 MW two years ago.

“Industrial growth and an increase in people’s purchasing power drove the rise in electricity demand. While the growing demand was a positive sign of the state’s development, there was also a need to strengthen power generation and distribution systems in line with the increasing requirement,” he said.

The government provides an annual subsidy of about ₹14,000 crore for free agricultural power, Bhatti Vikramarka said. 

Published on September 10, 2026