The Ministry of Power (MoP) has invited public comments on draft guidelines for the procurement of storage capacity and stored energy from Pumped Storage Plants (PSPs) through competitive bidding. These guidelines aim to promote the development of PSPs and create a transparent framework for their integration into the national power grid. These draft guidelines were issued on August 22, 2024.
Growing Demand for Energy Storage
The National Electricity Plan 2023 identifies a significant need for Energy Storage Solutions (ESS) in India. The plan outlines a target of 74 GW/411 GWh of ESS by 2031-32, with 27 GW/175 GWh coming from PSPs and the remaining 47 GW/236 GWh from Battery Energy Storage Systems (BESS).
Benefits of Pumped Storage Plants
The utilization of ESS offers several key advantages:
- PSPs can help bridge the gap between peak demand and available generation capacity.
- Increased storage capacity can lead to a more stable and efficient grid, potentially reducing peak electricity prices.
- PSPs rely on hydropower, a clean energy source, contributing to national decarbonization goals.
- By storing energy during off-peak hours, PSPs can help postpone investments in new transmission and distribution infrastructure.
Addressing the Need for Specific Guidelines:
While guidelines for Battery Energy Storage Solutions (BESS) procurement exist, PSPs require separate regulations due to their unique characteristics. These include longer project timelines, land acquisition and permitting processes, and distinct performance parameters compared to BESS.
Objectives of the Draft Guidelines
- Promote the development of PSPs in India.
- Establish a transparent and fair framework for PSP procurement through competitive bidding.
- Encourage risk-sharing between stakeholders involved in PSP projects.
Who is Impacted?
These draft guidelines are applicable to:
- Developers of Pumped Storage Plants
- Procurers of PSP Capacity or Energy (End Procurers or Intermediary Procurers)
- Existing, Under-Construction, and New PSP Projects
The Ministry is encouraging stakeholders to submit their comments on the draft guidelines within 15 days of the date of issuance. Comments can be submitted by email to nre.section-mop@gov.in.
