The Union Ministry of Power has kickstarted the setting up of pumped hydro storage (PSP) projects in the country and will soon come up with final tariff-based competitive bidding guidelines for producing electricity from pumped storage projects. Draft guidelines were issued two months ago and the deadline for comments and views from stakeholders ended in the first week of September 2024.
India plans 74 gigawatts (GW) of energy storage systems by 2031-32, including 27 GW from pumped storage plants and 47 GW from Battery Energy Storage Systems (BESS). The guidelines suggest concluding financial closure within 160-190 days from the zero date, including bid submission, evaluation, technical bid evaluation and power purchase agreements. If the project is coming up on a government-owned site, it will be developed as a Build Own Operate and Transfer (BOOT) project for 40 years.
A pumped hydro storage project (PSP) is a commonly used technology in many countries, in which water is pumped from a lower elevation reservoir to a higher elevation using low-cost surplus off-peak electric power to run the generators. During peak hour electrical demand, the stored water is released through turbines to produce electric power to balance shortages in the grid. The Union Ministry of Power issued draft guidelines on pumped hydro storage projects in March last year and later for energy storage systems.
Estimates say India has an on-river pumped storage potential of 103 GW. About eight projects (4745.60 MW) are presently in operation, four projects (2780 MW) are under construction, and 24 projects (26,630 MW) have been allotted by states which are under different stages of development, say sources. Out of about 56 projects with a potential of 73,240 MW identified, about 18 are in Maharashtra and about 10 projects are in the Northeast.
Renewable energy-focused companies like Tata Power, Adani Green Energy, JSW Neo Energy, Torrent Power and Greenko are planning big entry into PSPs. Nearly 40 GW of PSPs are being proposed by National Hydro Electric Power Corporation (NHPC), Tata Power, Adani Green Energy etc and nearly half of these potential sites are in Western Ghats. JSW Energy's subsidiary, JSW Neo Energy plans to set up a 960 MW capacity PSP at Pane (Raigarh) and plans to have 10 GW PSPs in Maharashtra, Chhattisgarh, Telangana, and Rajasthan.
Tata Power has already announced the construction of two projects - an 1800 MW PSP at Shirawata, Pune district and a 1000 MW PSP at Bhivpuri in Raigad district in Maharashtra with an investment of ₹13,000 crore. It has also identified three more potential sites with 9000 MW capacity, 3000 MW each at Potalpali in Thokarwadi, Kataldhara at Walwhan and Nenavali in Mulshi, all in Raigad district of Maharashtra.
Torrent Power is planning to invest ₹27,000 crore in three PHPs at Karjat (3,000 MW) in the Raigarh district and at Maval (1,200 MW) and Junnar (1,500 MW) in the Pune district of Maharashtra. The Greenko group is building a 1,680 MW PSP near Kurnool, Andhra Pradesh and is planning three more large PSPs. The NHPC has an agreement with the Maharashtra government to build pumped storage hydro projects totalling 7,350 MW capacity at Kalu - 1,150 MW, Savitri - 2,250 MW, Jalond - 2,400 MW and Kengadi -1,550 MW. Adani Green Energy's agreement with the Maharashtra Government is to invest nearly ₹60,000 crore in PSP projects over the next five years. NHPC and Gujarat Power Corporation Limited (GPCL) are planning to develop a 750 MW Kuppa Pumped Hydro Storage Project in Chhota Udaipur, Gujarat.
