CEA seeks to ease green norms for hydro pumped-storage projects (‘Environmental, forest-related clearances key reasons behind slow pace of PSP development’), Pg13

Key Highlights:

• The Central Electricity Authority (CEA) has proposed easing environmental norms to accelerate the development of hydro pumped-storage projects (PSPs).
• The CEA suggests allowing PSPs within eco-sensitive zones (ESZs) and up to 10 km from protected areas where ESZs aren't formally defined.
• India aims to increase its total installed PSP capacity to 87 GW by 2033-34 and over 100 GW by 2035-36 from the current 7.1 GW.
• The roadmap suggests extending viability gap funding (VGF) to PSPs to offset high capital costs, similar to the scheme for Battery Energy Storage Systems (BESS).

Detailed Insights:

• The CEA's recommendations address the challenge of integrating variable renewable energy sources like solar and wind by prioritizing PSPs for grid balancing and long-duration electricity storage.
• Environmental and forest clearances are major bottlenecks for PSP development due to stringent conditions and treating PSPs on par with conventional hydro projects.
• PSPs built on existing reservoirs or off-the-river sites have lower environmental impact and minimal displacement compared to conventional hydropower projects.
• The CEA proposes treating such PSPs as a distinct category for environmental and forest clearances and suggests using degraded forest land for compensatory afforestation.
• Delays in forest clearances, especially Stage-II approvals due to prolonged state-level approvals of rehabilitation plans, are significant challenges.
• The CEA recommends creating a national-level land bank for compensatory afforestation with mapped degraded land and a monitoring framework.

Key Concepts Involved:

• Hydro Pumped-Storage Projects (PSPs): Energy storage systems using water reservoirs at different elevations to store and generate electricity.
• Eco-Sensitive Zones (ESZs): Areas around protected areas notified to protect fragile ecosystems, where certain activities are restricted.
• Viability Gap Funding (VGF): Financial support to make projects economically viable by covering the gap between project cost and revenue.