The Kerala government is paving the way for private entrepreneurs to participate in pumped storage hydropower projects (PSP), marking a significant opportunity in the energy sector. These projects involve storing water in elevated reservoirs during surplus periods to generate electricity during peak demand, effectively addressing tariff fluctuations and reducing fossil fuel dependency. Leveraging solar and wind energy effectively and ensuring grid stability are additional benefits of PSPs. This notification was published on July 15, 2024.
Recognizing the substantial investment required, the government plans to collaborate with the private sector to complete these ventures. Following recommendations from the Energy Management Center (EMC), which advocates private and cooperative sector involvement akin to small hydropower projects, the Kerala government has initiated the formulation of project policies. Recently submitted to the government, the draft policy outlines strategies to facilitate private sector participation, ensuring sustainable development and energy security for the state.
This initiative not only promises to enhance energy infrastructure but also opens avenues for economic growth and technological innovation through public-private partnerships in Kerala’s burgeoning energy landscape.
