1. Capacity Development - PSHP
As of Dec’2024, India boasted 4745.6 MW installed capacity for PSHP, of
which only 3305.6 MW was operational. Till date all the operational PSHP
capacity is on-river only. During 2024 about 2100 MW of PSHP capacity was
concurred by CEA, while 5050 MW of the capacity was aligned for receiving
DPR.
2. Government Announcements & Achievements
Central Government
Another move to encourage development of PSHPs, the GoI has included pump hydro storage under Energy Storage Obligation (ESO) targets (2023-24 to 2029-30). The target fixated for 2023-24 was 1% of the total renewable energy to be sourced through energy storage systems. By 2029-30, this is targeted to increase to 4%, with the flexibility to utilize technologies such as pumped hydro storage or advanced batteries by that period.
State Government
Andhra Pradesh leads the pumped hydro storage development in India. According to the state’s New Integrated Clean Energy Policy released in 2024- commercial feasibility of 39 sites has been done with an estimated potential of 43.89 GW. The state targets to add 22 GW of pumped hydro storage capacity by 2030. The key support that government of Andhra Pradesh has been providing to the developers for PSHP are – Budgetary support for construction of roads and bridges by Hydro Power Project developers, including PSPs up to Rs 1.5 crore/MW for projects up to 200 MW and up to Rs 1 crore/MW for projects above 200 MW Monetization of ancillary PSP services to meet critical electricity market requirements Directions on offering tax incentives and land acquisition fee exemptions for off-river projects Eliminating upfront premiums for project allocation
Source: Andhra Pradesh Integrated Clean Energy Policy, CEA, Eninrac
3. Market Insight
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i. Player wise capacity buildup updates
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NHPC operates the 1,480 MW Kadana Pumped Storage Project in Gujarat.
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Torrent plans to 5-8 GW of pumped hydro storage capacity in India
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ii. Merger & Acquisition
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JSW Energy's subsidiary, JSW Neo Energy, announced the acquisition of O2 Power's subsidiaries for $1.47 billion. This deal encompasses 4.7 GW of renewable capacity, aligning with JSW Energy's goal to achieve 20 GW of renewable capacity by 2030.
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iii. Player wise key investment updates
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Adani Green Energy committed to investing approximately ₹60,000 crore over the next five years in Maharashtra's PSH projects. Torrent has announced an investment of INR 25,000-35,000 crores for pumped hydro storage projects in India
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iv. Funding Updates
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The Indian government expanded its financial assistance for hydropower projects, allocating ₹12,461 crore for the fiscal years 2024-2025 to 2027-2028. This initiative aims to support approximately 31 GW of hydropower capacity, including 15 GW from Pumped Storage Projects (PSPs).
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v. Auction/Tender updates
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SJVN has signed a letter of intent for the construction of a 2.4 GW pumped storage project from the Indian state government of Mizoram. The pumped storage project has been proposed across Darzo Nallah, a tributary of the Tuipui River.
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Torrent has signed an LOA to provide 2 GW of energy storage capacity from its upcoming intrastate transmission system-connected pumped hydro storage plant being set up in Maharashtra
Key Details – SJVN PSHP Project in Mizoram
üIt is an on-stream closed loop type (off-river) projectüIt comprises of 8 units of 300 MW capacity eachüThe annual energy generation with 95% plant availability shall be 4,993.20 MUüThe annual input energy required for pumping water to the upper reservoir has been estimated to be 6,331.66 MU with 95% plant availabilityüLikely to be commissioned by 2030
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4. Capacity Outlook
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Anticipated Capacity Addition
India has commissioned 4.75 GW of capacity as of December 2024. It is anticipated that from a period 2025-2032, India may add nearly 74.5 GW of PSHP. This may lead to the total PSHP installation in the country to 79 GW. Of the total anticipated capacity addition, nearly 7.9 GW is slated through on-river PSHPs, while 66.5 shall be added through off-river PSHPs. As of Dec’2024, about 62.4 GW of the pumped storage capacity is under survey & investigation only, while only 4 GW is the capacity for which detailed project reports (DPRs) have been concurred by CEA.
