India is expanding pumped storage capacity to support grid stability and renewable energy. 11 projects of 15,870 MW are under construction. The government has taken several steps to speed up approval of projects and promote private sector participation.
New Delhi [भारत]July 20 (ANI): India is expanding its pumped storage capacity to strengthen grid stability and aid integration of renewable energy, the power ministry said on Monday. Currently 11 Pumped Storage Projects (PSPs) with total installed capacity of 15,870 MW are under construction.
Additionally, six PSPs with a combined capacity of 8,140 MW have been consented or appraised by the Central Electricity Authority (CEA) and their construction is yet to commence.
Government steps to accelerate projects
The Government has taken several steps to expedite statutory and environmental clearance for PSPs and reduce the time taken for project approvals. Under the revised CEA guidelines for preparation and consent of Detailed Project Report (DPR), the time limit for consent has been reduced from 90 days to 50 days for all types of PSPs. Such projects also do not require approval for inter-state aspects.
Role in renewable energy and grid stability
“Pumped Storage Projects (PSPs) support the integration of renewable energy by storing excess energy during off-peak periods and supplying power during peak demand,” the ministry said.
These projects provide long-term energy storage, balancing power and supporting grid services, including frequency regulation, voltage support and black start capability. These features are expected to support grid stability and reliability, while also enabling higher penetration of renewable energy.
Environment clearance made easier
The Ministry of Environment, Forest and Climate Change has also taken several measures to facilitate the development of PSPs. These include enabling appraisal of certain projects under the B2 category, issuing specific terms of reference for off-stream PSPs and extending provisions related to survey in forest areas to hydropower and pumped storage projects.
The Government has further increased the number of boreholes permitted for survey and exploration in forest areas for developmental projects including PSPs.
Initiative to promote private sector
To encourage private sector participation, the Ministry of Power notified guidelines to promote PSP development in April 2023. The government has also provided budgetary support for supporting infrastructure such as roads, bridges, railway sidings, ropeways, communication infrastructure and transmission lines connecting power houses to the nearest pooling point.
A tariff-based competitive bidding framework was notified in February 2025 to facilitate procurement of storage capacity and stored energy from pumped storage plants through open and transparent bidding.
The Central Electricity Regulatory Commission has also provided 100 per cent rebate in inter-state transmission system charges for PSPs for 25 years from the date of commercial operation for projects where construction work is awarded on or before June 30, 2028.
“These measures are aimed at encouraging greater private sector participation in the development of PSPs,” the ministry said. (ANI)
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