STATUS ON PUMPED STORAGE PROJECTS

Key Highlights:

• India currently has 11 Pumped Storage Projects (PSPs) with an aggregate capacity of 15,870 MW under construction.
• An additional 6 PSPs totaling 8,140 MW have been concurred/appraised by the Central Electricity Authority (CEA).
• The Ministry of Environment, Forest & Climate Change (MoEF&CC) has streamlined environmental clearances, including appraising PSPs under the B2 category.
• The CEA has reduced the timeline for Detailed Project Report (DPR) concurrence from 90 to 50 days for all PSPs.
• The government offers 100% waiver of Inter-State Transmission System (ISTS) charges for PSPs for 25 years if construction is awarded by June 30, 2028.
• PSPs are crucial for integrating renewable energy, providing long-duration storage, and ensuring grid stability.

Detailed Insights:

• MoEF&CC enabled appraisal of PSPs under the B2 category, simplifying environmental clearance processes.
• Specific Terms of Reference (TOR) were issued for off-stream PSPs, detailing baseline data collection requirements.
• Provisions for survey in forest areas, including enhanced borehole numbers, have been extended to hydel/PSPs.
• The CEA no longer requires clearance for Inter-State Aspects of PSPs, further expediting project development.
• The capital expenditure limit for hydro generating stations requiring CEA concurrence was revised to ₹3,000 crore.
• Off-stream closed-loop PSPs are exempted from CEA concurrence, irrespective of capital expenditure.
• The Ministry of Power has issued guidelines to promote PSP development and provides budgetary support for enabling infrastructure.
• Tariff Based Competitive Bidding (TBCB) guidelines have been notified for procuring storage capacity from PSPs.
• PSPs offer essential grid services like frequency regulation, voltage support, and black start capability.

Key Concepts Involved:

• Pumped Storage Projects (PSPs): Hydroelectric power plants that store energy by pumping water to an upper reservoir for later release to generate electricity.
• Central Electricity Authority (CEA): A statutory organization that advises the government on policy matters and coordinates the development of the power sector.
• Inter-State Transmission System (ISTS) Charges: Fees levied for using the national grid to transmit electricity across state boundaries.
• Tariff Based Competitive Bidding (TBCB): A transparent procurement method where developers bid on tariffs for power projects, fostering competition.