Power Ministry reviews national progress on pumped storage projects

The Ministry of Power held a meeting of its Parliamentary Consultative Committee in Kurnool district, Andhra Pradesh, to review India’s plans for pumped storage projects. Union Power Minister Manohar Lal led the discussion and highlighted the role of PSPs in storing surplus renewable energy and maintaining grid stability during evening and night hours.

The Minister noted that reservoir evaporation is a concern for long term PSP performance. He advised the use of floating solar systems on PSP reservoirs to reduce losses and increase clean energy generation. He also asked State Governments to accelerate site identification, water allocation, and clearances. He encouraged committee members to work with states to consider waiving charges such as green energy cess, water tax, and reservoir lease fees.

The Ministry outlined an identified national PSP potential of 224 GW. Ten projects with 7 GW are operational. Ten projects with 12 GW are under construction. Fifty six projects with 78 GW are at planning or development stages. Minister of State for Power Shripad Yesso Naik pointed to the commissioning of all eight units of the 1680 MW Pinnapuram PSP and the 500 MW Tehri PSP as major achievements for the 2025 to 2026 period.

Officials also detailed policy actions meant to speed up development. The government has approved a 25 year ISTS charge waiver for PSPs awarded before June 30 2028. New PSP guidelines simplify site allocation and remove free power and Local Area Development Fund requirements. Budgetary support is in place for enabling infrastructure. Off stream closed loop PSPs now do not require CEA concurrence. The capital cost limit for CEA concurrence on hydro and PSP projects has been raised to 3000 crore rupees. Tariff Based Competitive Bidding guidelines have been issued for buying storage capacity from PSPs.