Companies
NHPC plans ₹1.76-tn pumped storage units
Summary
In June, the firm signed an initial agreement with an Odisha state utility to build 2,000 MW of pumped storage, and 1,000 MW renewable energy projects in the state. The MoU signed with Gridco Ltd envisages setting up self-identified pumped storage projects.New Delhi: State-run NHPC Ltd is set to invest ₹1.40-1.76 trillion to establish pumped hydropower storage capacities of 20,000-22,000 MW across India over the next few years. According to Rajendra Prasad Goyal, director, finance, it will require to have a capex of ₹7-8 crore for each megawatt.
“We are planning to set up large pumped hydro projects. We have already signed MoUs with Odisha, Madhya Pradesh, Maharashtra and Andhra Pradesh. These projects may take two years to take off," he said.
In June, the firm signed an initial agreement with an Odisha state utility to build 2,000 MW of pumped storage, and 1,000 MW renewable energy projects in the state. The MoU signed with Gridco Ltd envisages setting up self-identified pumped storage projects.
Last month, NHPC signed an agreement with Maharashtra to set up projects totalling 7,350 MW. According to the memorandum of understanding (MoU)), it will develop four pumped storage units with a total capacity of 7,350 MW, at Kalu (1,150 MW), Savitri (2,250 MW), Jalond (2,400 MW) and Kengadi (1,550 MW).
“We are exploring 20,000- 22,000 MW. We are looking at both technical feasibility and commercial viability," he said.
The focus on pumped storage follows the government’s policy push. In April, the union ministry of power issued the guidelines on concessional climate finance, uniform environment clearances for pumped storage projects, to add around 5 GW. According to the Centre, states must ensure that no upfront premium is charged for project allocation. Besides, in a bid to ensure financing for the capital-intensive projects, the Centre said financial institutions such as Power Finance Corp., Rural Electrification Corp and Indian Renewable Energy Development Agency will treat pumped hydropower storage projects on a par with other renewable energy projects, for extending long-term loans of 20-25 years. The debt equity ratio of the projects can be up to 80:20, in consultation with the financial institutions, according to the guidelines.
As India adds more renewable energy capacity, it should also ensure grid stability and pumped storage is a key solution for grid reliability. It helps set up affordable, large storage capacities for electricity distribution.
These projects store and generate electricity by transferring water between two reservoirs at different levels. When electricity demand is low, say, at night or on weekends, excess energy is used to pump the water to the upper reservoir. During periods of high demand, the stored water is released through turbines to generate electricity.
According to economists, PSPs are expected to remain cost competitive than battery energy storage systems.
