The Ministry of Power today held a meeting of the Consultative Committee of Members of Parliament at Pinnapuram, Kurnool district, with a focused discussion on the growing importance of Pumped Storage Projects (PSPs) in India’s renewable energy landscape. The session was chaired by Union Power Minister Shri Manohar Lal, and attended by Minister of State for Power Shri Shripad Yesso Naik, MPs from both Houses, senior officials from the Ministry of Power, the Central Electricity Authority (CEA), and power sector PSUs.
During the meeting, the Union Power Minister emphasized that PSPs are set to play a critical role in storing surplus green energy—particularly solar power—and supplying electricity during non-solar hours. Addressing concerns related to reservoir evaporation losses, he suggested the deployment of floating solar plants as an effective mitigation measure.
Shri Manohar Lal further stressed the key role of State Governments in expediting PSP development through timely site and water allocations, as well as swift statutory clearances. He urged MPs to engage with states to reconsider levies such as Green Energy cess, water tax, and reservoir lease fees, which can impede project viability.
224 GW PSP Potential Identified Nationwide
Officials informed the Committee that India has identified an estimated 224GW of PSP potential. Currently:
- 10 PSPs totaling ~7GW have already been commissioned.
- 10 more PSPs with ~12GW capacity are under construction.
- 56 PSPs with around 78GW capacity are in various stages of planning and development.
Policy Push to Accelerate PSP Development
The Ministry outlined several policy measures aimed at boosting PSP deployment. These include:
- Guidelines for PSP development, covering site allotment modalities and exemption from free power obligations.
- 25-year ISTS charge waiver for projects awarded on or before June 30, 2028.
- Budgetary support for enabling infrastructure.
- Notification of Renewable Consumption Obligations for energy storage.
- Tariff-Based Competitive Bidding (TBCB) guidelines for procurement of storage capacity.
- Exemption of off-stream closed-loop PSPs from CEA concurrence requirements.
- Revision of the capital expenditure threshold for CEA concurrence to ₹3,000 crore, up from earlier limits of ₹2,500 crore (competitive projects) and ₹1,000 crore (MoU-route projects).
Committee members commended the Ministry for creating a more conducive environment for PSP development. They noted that measures such as easing technical requirements, offering ISTS waivers, and providing infrastructure support have strengthened confidence among developers and state authorities.
Lower Environmental Impact Highlighted
The Committee also discussed the environmental considerations associated with PSPs and other renewable energy sources. Members observed that PSPs generally have a lower environmental impact compared to other large-scale energy infrastructure.
Major PSP Commissioning Expected in 2025–26
Minister of State Shri Shripad Yesso Naik informed the Committee that all eight units of the 1,680MW Pinnapuram PSP, along with the 500MW Tehri PSP, are expected to be successfully commissioned during 2025–26. He said the milestone reflects strong coordination among the Centre, States, CPSUs, and private developers, and marks a significant advancement in India’s energy storage capacity.
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