Pumped Storage Hydropower

Key Highlights:

• India targets 500 GW non-fossil fuel capacity by 2030, with energy storage crucial for integrating variable renewable sources.
• The Central Electricity Authority (CEA) projects 73.93 GW of storage capacity by 2031-32, including 26.69 GW from Pumped Storage Projects (PSPs).
• India's operational PSP capacity stands at 7.43 GW as of July 2026, with an additional 15.87 GW under construction.
• The total identified PSP potential in India is 345.38 GW, with a projected cumulative capacity of 105.56 GW by 2035-36.
• India ranks 4th globally in installed PSP capacity, reinforcing its growing role in the global pumped storage landscape.
• The government has introduced Ministry of Power Guidelines to Promote Development of Pumped Storage Projects in India (April 2023) and an Inter-State Transmission System (ISTS) charge waiver for eligible PSPs.

Detailed Insights:

• PSPs function as "water batteries," storing surplus electricity by pumping water to an upper reservoir and releasing it through turbines during high demand.
• They provide long-duration storage and peaking support, essential for grid stability and shifting renewable electricity across time.
• Battery Energy Storage Systems (BESS) offer rapid, short-duration solutions, complementing PSPs which provide large-scale, long-duration storage.
• PSPs are classified into on-stream, off-stream open-loop, and off-stream closed-loop schemes, with a focus on off-stream projects to minimize environmental impact.
• The Western Region holds the highest identified PSP potential at 129.72 GW, attributed mainly to the topographical features of the Western Ghats.
• Government initiatives include budgetary support for essential infrastructure, Tariff-Based Competitive Bidding (TBCB) Guidelines, and faster project approvals.
• The Ministry of Environment, Forest and Climate Change (MoEF&CC) has streamlined environmental appraisal for PSPs, including B2 categorisation for eligible projects.
• The CEA's Jal Vidyut DPR portal enables real-time monitoring of survey and investigation activities, facilitating coordination and accelerating project development.

Key Concepts Involved:

• Pumped Storage Project (PSP): A type of hydropower that stores energy by pumping water from a lower to an upper reservoir, then releasing it to generate electricity.
• Battery Energy Storage Systems (BESS): Technologies that store electrical energy in batteries for later use, typically for short-duration grid support and frequency regulation.
• Inter-State Transmission System (ISTS) Charge Waiver: An exemption from charges for transmitting electricity across state lines, offered as an incentive for certain projects.
• Non-fossil fuel capacity: Electricity generation capacity derived from sources that do not involve burning fossil fuels, such as renewables and nuclear power.