India has 15,870 MW of pumped storage capacity under construction to support renewable energy integration
New Delhi, July 20
India is expanding its pumped storage capacity to strengthen grid stability and support the integration of renewable energy, with 11 Pumped Storage Projects having an aggregate installed capacity of 15,870 MW currently under construction, the Ministry of Power said on Monday.
In addition, six PSPs with a combined capacity of 8,140 MW have been concurred with or appraised by the Central Electricity Authority (CEA) and are yet to be taken up for construction.
The government has taken several steps to accelerate statutory and environmental clearances for PSPs and reduce the time required for project approvals.
Under revised CEA guidelines for the formulation and concurrence of Detailed Project Reports (DPRs), the timeline for concurrence has been reduced from 90 days to 50 days for all types of PSPs. Clearance of inter-State aspects is also not required for such projects.
"Pumped Storage Projects (PSPs) support the integration of renewable energy by storing surplus energy during off-peak periods and supplying power during peak demand," the Ministry said.
The projects provide long-duration energy storage, balancing power and ancillary grid services, including frequency regulation, voltage support and black start capability. These features are expected to support grid stability and reliability while enabling higher penetration of renewable energy.
The Ministry of Environment, Forest and Climate Change has also taken several measures to facilitate the development of PSPs. These include enabling the appraisal of certain projects under the B2 category, issuing specific Terms of Reference for off-stream PSPs and extending provisions related to surveys in forest areas to hydel and pumped storage projects.
The government has further enhanced the number of boreholes permitted for surveys and exploration in forest areas for developmental projects, including PSPs.
To encourage private sector participation, the Ministry of Power notified guidelines for promoting PSP development in April 2023. The government has also provided budgetary support for enabling 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 a 100 per cent waiver of Inter-State Transmission System charges for PSPs for 25 years from the commercial operation date, for projects where construction work is awarded on or before June 30, 2028.
"The measures taken are aimed at encouraging greater private sector participation in the development of PSPs," the Ministry said.
— ANI
Reader Comments
Good initiative, but we must ensure environmental safeguards. Many PSPs in Western Ghats and Himalayan regions could disrupt local ecosystems. The B2 category appraisal for some projects concerns me - we need proper impact assessments, not just faster clearances. Renewable energy shouldn't come at the cost of biodiversity.
Finally! As someone working in the power sector, I can tell you this is exactly what we need. Our solar and wind capacity is growing rapidly but without storage, it's unreliable. The 100% ISTS waiver for 25 years is massive - will attract serious investment. Now we need to replicate this for battery storage too.
Pumped storage is proven technology but capital-intensive. The 50-day DPR approval is impressive streamlining. However, I hope the tariff-based bidding framework ensures competitive pricing for consumers. We don't want storage costs making electricity more expensive for common citizens in the long run.
Great move by the government! But why is 66% of capacity still under construction? We need faster execution. Also, states like Kerala with good hydro potential haven't been mentioned - hope they're included. With global climate targets, India needs these projects operational by 2027-28, not dragging into 2030s.
This is a masterstroke for grid stability! Black start capability means even if the grid collapses, PSPs can restart generation - crucial for national security. The 11 projects under construction will create thousands of jobs. Our energy transition is finally getting the storage backbone it deserves. Jai Hind! 🇮🇳
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