Author: PPD Team Date: 17/03/2025
REC Limited has signed a memorandum of understanding (MoU) with the Energy Management Centre (EMC), Government of Kerala, to finance pumped storage projects (PSPs) in the state over the next five years. The investment, estimated at Rs 183.6 billion, aims to enhance grid stability and facilitate the integration of renewable energy.
The PSPs will play a crucial role in Kerala’s long-term energy strategy, which focuses on sustainable and efficient power management. As renewable energy sources like solar and wind power are intermittent, pumped storage solutions help store excess energy and supply it when demand rises. The EMC, an autonomous body under the state’s Department of Power, will oversee the planning and execution of these projects in collaboration with Kerala State Electricity Board Limited.
REC has been actively expanding its renewable energy financing. According to its Annual Report 2023-24, the company engaged with developers across multiple green sectors, including solar, wind, PSPs, e-mobility, and green hydrogen. It anticipates a tenfold increase in its renewable energy portfolio in the coming years.
During the financial year 2023-24, REC sanctioned 82 renewable energy projects, with a combined installed capacity of 17,465 MW and a total loan assistance of Rs 1.36 trillion. This included:
- 10 large hydro projects (4,876 MW)
- 33 solar projects (4,423 MW)
- 15 wind projects (917 MW)
- 3 solar-wind hybrid projects with battery storage (1,775 MW)
- 5 pumped storage projects (5,450 MW)
- 3 small hydro projects (24 MW)
- Manufacturing plants for solar modules and wind turbines
- E-mobility projects for 5,750 electric buses
- Green ammonia and compressed biogas production plants
Utility-scale energy storage, including pumped hydro and battery energy storage systems (BESS), is expected to play a crucial role in ensuring grid flexibility. The Central Electricity Authority (CEA) estimates that by 2030, India could add 14 GW of pumped hydro capacity and 41 GW of BESS projects.