SDG 7: Affordable and Clean Energy | SDG 9: Industry, Innovation and Infrastructure | SDG 13: Climate Action
Central Electricity Authority (CEA) | Ministry of Power | Government of India
The Central Electricity Authority (CEA) has released a comprehensive roadmap to achieve 100 GW of Hydro Pumped Storage Projects (PSPs) by 2035-36. This strategic plan is essential to support India’s goal of reaching 500 GW of non-fossil fuel capacity by 2030 and attaining net-zero emissions by 2070. As variable renewable energy (VRE) sources like solar and wind grow, PSPs—often referred to as “Water Batteries”—provide the necessary large-scale flexibility, grid inertia, and balancing power required for a stable power system.
Projected Capacity and Investment Requirements
To integrate higher levels of renewable energy beyond 2030, the requirement for storage capacity is projected to rise to 161 GW by 2034-35 and 476 GW by 2046-47.
Capacity Targets: The roadmap envisages an average addition of 9 GW per year, reaching a cumulative PSP capacity of 105.5 GW by 2035-36.
Investment: The total investment required to meet the 2035-36 target is estimated at approximately ₹5.8 lakh crore, based on an average cost of ₹6 crore per MW.
Potential: India possesses a total assessed PSP potential of 267 GW, comprising 58 GW of on-stream and 209 GW of off-stream projects.
Policy Measures for Expeditious Development
The government has introduced several measures to accelerate project timelines and improve financial viability:
Off-Stream Closed-Loop Focus: These projects are prioritized due to their minimal environmental impact, faster statutory clearances, and shorter gestation periods (approx. 3.5 to 4 years).
Incentives and Waivers: Measures include a 100% waiver of ISTS charges for projects awarded by June 2028, budgetary support for enabling infrastructure (roads, bridges, etc.), and the exemption of off-stream closed-loop PSPs from mandatory CEA concurrence to enhance the ease of doing business.
Indigenous Focus: In line with “Atmanirbhar Bharat,” the roadmap emphasizes utilizing domestic manufacturing for turbines and generators, reducing reliance on imported battery technologies.
What is the distinction between “On-Stream” and “Off-Stream Closed-Loop” PSPs? On-stream PSPs utilize reservoirs located directly on a river or natural stream, which often results in higher environmental impacts and more complex clearance processes. In contrast, Off-Stream Closed-Loop PSPs consist of two reservoirs located away from natural river systems. They require only an initial filling of water and minimal make-up water for evaporation, leading to significantly lower impacts on aquatic ecology, reduced hydrological risk, and a faster construction gestation period of under 4 years.
Policy Relevance
The roadmap marks a transition from viewing storage as a secondary need to a primary pillar of grid stability.
Grid Resilience: By providing “green storage,” PSPs ensure that renewable energy becomes dispatchable, preventing blackouts and reducing the need for high-carbon thermal operating reserves.
Strategic Independence: Prioritizing PSPs over import-heavy battery solutions secures India’s energy supply chain against geopolitical disruptions.
Socio-Economic Development: These capital-intensive projects drive local infrastructure upgrades and job creation, particularly in remote regions.
Relevant Question for Policy Stakeholders: How can the identified 31 mine voids be fast-tracked for PSP development to demonstrate the viability of utilizing discarded industrial infrastructure for clean energy storage?
Follow the full update here: Roadmap to 100 GW of Hydro Pumped Storage Projects