Framework for pumped hydro storage plants on the Anvil

Framework for pumped hydro storage plants on the Anvil

The power ministry is expected to soon announce a framework to facilitate setting up pumped hydro storage plants, which will boost round-the-clock electricity supply from non-fossil sources.

The framework includes details identifying sites for project development, single-window clearance, and central monitoring of the projects. It is expected to be notified around the end of December or January beginning, a senior government official told ET.

The move will promote renewable energy addition as pumped hydro storage will help resolve the issue of intermittent power supply from solar and wind sources, and it is cheaper than battery storage, the official said.

The stored power can be sold or used in peak demand hours. Independent storage owners can even sell the capacity to renewable energy generators at a certain cost.

Pumped hydro storage act like a giant battery that stores power to release it when needed. It is a two-reservoir system at different elevations. In the case a renewable project has surplus power, it can be used to pump water to the higher reservoir during the non-peak hours.

When electricity is needed, water can drop through a turbine to the lower reservoir giving back the stored electricity.

Renewable power generators and hydropower producers can set up pumped storage plants at existing or completely new sites like in abandoned mines.
It will also help companies wanting round-the-clock non-fossil power for heavy captive consumption like in the steel and cement sectors. Such companies can set up their own pumped hydro storage plants or purchase storage facilities from those setting up.

“In the long run, the industries think that it [pumped hydro storage] will be cheaper. They will get the main energy from solar or wind and can mix that with the storage from PSP and the combined basket will be cheaper from what is being supplied by distribution companies after cross-subsidy,” the official said.