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Pumped Storage Projects (PSP) in India



  May 04, 2024

Pumped Storage Projects (PSP) in India



What is a Pumped Storage Project (PSP)?

A Pumped Storage Project (PSP) is a type of hydroelectric power system that serves as a large-scale energy storage facility. It works by pumping water from a lower reservoir to an upper reservoir during periods of low energy demand and releasing it back through turbines to generate electricity during peak demand.

How significant is the PSP capacity in India?

India currently has a cumulative installed PSP capacity of about 4.75 gigawatts (GW). Of this, 3.3 GW are operational in pumping mode. The potential for on-river PSP in India is estimated by the Central Electricity Authority (CEA) to be about 103 GW.

What are the developmental stages of PSP in India?

As of now, approximately 44.5 GW of PSP projects are at various stages of development in India. This includes projects that are in planning, under construction, or pending approval.

What role does PSP play in India's renewable energy strategy?

PSPs are critical in stabilizing the grid against the variability of renewable energy sources like solar and wind. By storing excess energy and releasing it during high demand, PSPs help integrate a larger share of renewables into the grid, facilitating India's goals for decarbonization and energy security.

What are the environmental impacts of PSPs in India?

While PSPs are generally considered to have minimal direct emissions, their construction can significantly impact local ecosystems and wildlife habitats. Concerns typically include land use changes, potential displacement of communities, and impacts on local biodiversity. Environmental assessments are crucial to address and mitigate these impacts.

What government initiatives are in place to promote PSPs in India?

The Indian government has issued draft guidelines to promote the development of PSPs. These guidelines propose various incentives such as exemptions from stamp duty, concessional rates for government land, and relief in State Goods and Services Tax (SGST) to encourage the development of PSP facilities.

How does the Energy Storage Obligation affect PSP development?

The Ministry of Power has set an Energy Storage Obligation that mandates a gradual increase in storage capacity, with an emphasis on sourcing at least 85% of this capacity from renewable energy. This obligation supports the integration of PSPs by ensuring they play a key role in meeting India’s energy storage needs.

What are the challenges facing PSP development in India?

Challenges include high upfront costs, long gestation periods, and the need for significant regulatory approvals. The need for comprehensive environmental and social impact assessments can also delay project rollout. Addressing these challenges requires coordinated efforts between government bodies, local communities, and developers.

What future potential does PSP hold for India?

With its significant potential capacity of 103 GW, PSP can play a substantial role in enhancing India's energy storage and grid stability, particularly as the country increases its reliance on intermittent renewable energy sources. The strategic development of PSP can aid in achieving energy sustainability and meeting international climate commitments.

These FAQs highlight the crucial role of Pumped Storage Projects in India's energy landscape, their environmental considerations, and the government's efforts to facilitate their growth in alignment with India's broader energy and environmental goals.

Where are major Pumped Storage Projects (PSPs) located in India?

Major Pumped Storage Projects in India are located in several states, each chosen for their geographical suitability for such installations. Here are a few notable examples:

Nagarjuna Sagar - Located in Telangana, this is one of the older and more significant PSP facilities in India.

Srisailam - Also situated in Telangana, this project plays a crucial role in both power generation and irrigation.

Kadamparai - This PSP is in Tamil Nadu and is known for its role in grid balancing during peak demand times.

Bhira and Ghatgar - Both are located in Maharashtra and contribute to the state’s energy stability.

Purulia - Situated in West Bengal, this project is particularly notable due to its location in the Ajodhya Hills.

These projects are strategically located in regions that can take advantage of geographical elevation differences, essential for the operation of pumped storage facilities. Each plays a pivotal role in its respective state's energy grid, helping to manage the load and integrate renewable energy sources effectively.


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