Ministry of Power Pushes Pumped Storage Projects; 224 GW Potential Identified Across India

The Ministry of Power convened a meeting of the Consultative Committee of Members of Parliament at Pinnapuram, Kurnool district, Andhra Pradesh, chaired by Union Minister of Power, Shri Manohar Lal, with a key focus on Pumped Storage Projects (PSPs) and their role in strengthening India’s renewable energy ecosystem.

Addressing the members, Shri Manohar Lal highlighted the critical role of PSPs in storing surplus renewable power and ensuring a steady electricity supply during non-solar hours. To counter evaporation losses from PSP reservoirs, he suggested deploying floating solar power plants as a sustainable solution. He also emphasized the importance of State Governments in facilitating PSP development through timely site allocation, water approvals, and faster clearances, urging withdrawal of levies like Green Energy cess, water tax, and reservoir lease fees to accelerate project execution.

Members were informed that India has identified a nationwide PSP potential of approximately 224 GW. Of this, 10 PSPs (7 GW) have been commissioned, 10 PSPs (12 GW) are under construction, and 56 PSPs (78 GW) are at various planning and development stages.

The Ministry briefed members on several policy reforms to fast-track PSP development, including:

Guidelines for PSP development outlining site allotment modalities and exemptions from free power obligations.
Full waiver of ISTS charges for 25 years for projects awarded before June 30, 2028.
Budgetary support for enabling infrastructure and introduction of Tariff-Based Competitive Bidding (TBCB) for storage procurement.
Exemption of off-stream closed-loop PSPs from CEA concurrence.
Revised capital expenditure threshold for CEA concurrence to Rs 3,000 crore from previous limits of Rs 2,500 crore (competitive projects) and Rs 1,000 crore (MoU projects).

Committee members commended the Ministry for its comprehensive policy framework and noted that measures such as easing technical appraisal, budgetary support, and waivers have boosted investor and state confidence in the PSP sector.

They also discussed environmental aspects of PSPs and renewable energy projects, acknowledging PSPs as a low-impact, high-efficiency solution for energy storage.

Minister of State for Power, Shri Shripad Yesso Naik, highlighted the upcoming commissioning of all eight units of the 1680 MW Pinnapuram PSP and the 500 MW Tehri PSP during FY 2025–26 as a major national milestone, reflecting strong coordination among the Centre, States, CPSUs, and private sector.