Power sharing across States, Pg7

– Telangana signed MoUs with Himachal Pradesh, Rajasthan, and Odisha for energy collaboration. – Projects include 1,600 MW thermal energy in Telangana and 1,500 MW solar energy in Rajasthan. – Investment worth ₹26,200 crore; SCCL holds 74% equity, RVUNL holds 26%. – Hydropower from Himachal and solar from Rajasthan to meet Telangana’s rising power demand. – Reflects cooperative federalism and continuity in national energy policy.

Background/Context

• India’s power demand is growing faster than projections due to economic expansion and domestic consumption.
• The Central Electricity Authority (CEA) projected demand to rise by 8% (from 15,623 MW to 16,877 MW) in 2024-25, but actual growth is 9.85% to 17,162 MW.
• Inter-State energy cooperation began during Dr. Manmohan Singh’s tenure, enabled via national grid systems.

Key Developments

• Telangana is actively expanding renewable energy by:
  • Partnering with Himachal Pradesh for hydropower: Seli (400 MW) and Meyar (120 MW) projects.
  • Partnering with Rajasthan for solar power: 1,500 MW capacity.
  • Signing an MoU with Odisha to access surplus power.
• The ₹26,200 crore project is backed by Singareni Collieries Company Limited (SCCL) and Rajasthan Vidyut Utpadan Nigam Ltd (RVUNL).
• Project ownership transfer from Telangana to Himachal after 40 years.

Strategic/Policy/Legal/Economic Implications

• Enhances base-load power with lower generation costs by combining thermal and solar.
• Promotes clean energy, long-term energy security, and sustainable planning.
• Rajasthan’s goal: 125 GW renewable energy capacity by 2030.
• Demonstrates collaborative federalism and multi-state policy alignment.
• Addresses land cost issues in Telangana and lack of hydro resources via partnerships.

India's Stand or Way Forward

• Focus on scaling renewable share in the energy mix.
• Deeper inter-State cooperation to bridge regional disparities in resource availability.
• Push for policy frameworks governing long-term project ownership, cost-sharing, and maintenance.
• Model strategies like "One District, One Innovation" can be adapted for energy cooperation.

Challenges Ahead

• Land prices in Telangana are high for solar installations.
• Hydropower project execution in hilly terrains of Himachal may face logistical delays.
• Regulatory mechanisms needed for inter-State project ownership and operation agreements.
• Need to ensure timely completion and institutional support for sustained collaboration.

Mains Mock Question:

“Inter-State cooperation in energy production and distribution can be a key driver for achieving energy security and sustainable development. Critically examine with reference to recent agreements among Indian States.”