CEA approves 2,600 MW in hydro-pumped storage projects, targets 74 GW by 2031-32

The Central Electricity Authority approved projects include a 600 MW facility in Odisha, developed by OHPC Ltd, and a 2000 MW plant in Karnataka, developed by KPCL. 

In a significant boost to India’s renewable energy sector, the Central Electricity Authority (CEA) has approved two major Hydro Pumped Storage Plants (PSPs) to support the country’s transition to cleaner energy. The approved projects include a 600 MW facility in Odisha, developed by OHPC Ltd, and a 2000 MW plant in Karnataka, developed by KPCL.

This accelerated approval process comes as part of CEA’s initiative to fast-track the development of Hydro PSPs, which are crucial for integrating renewable energy and enhancing energy security. The CEA’s decision follows substantial support from various stakeholders, including CWC, GSI, and CSMRS.

The CEA has also streamlined the approval process for future Hydro PSPs, aiming to address the growing energy storage demand. New guidelines have been introduced to simplify the process for preparing Detailed Project Reports (DPRs) and obtaining CEA concurrence.

Key changes in the approval process include a simplified document checklist, which shortens the review process for Detailed Project Reports (DPRs). Developers can now submit DPRs online after completing the first 12 design chapters, and the approval of cost and financial chapters is no longer mandatory, though still required for reference. For off-stream Hydro Pumped Storage Projects (PSPs), there is no longer a need to submit alternative reservoir location plans. Developers are now required to provide an undertaking confirming that their DPRs align with pre-DPR clearances, which reduces re-examination time. The process for early excavation permission has been streamlined, allowing developers to begin work at their own risk and potentially saving 6 to 8 months. Additionally, developers are advised to conduct and submit investigation reports promptly, which could save 1 to 2 months.

The Indian government has identified Energy Storage Systems, including Hydro PSPs, as a priority to ensure national energy security. According to the National Electricity Plan (Generation), the installed capacity of Energy Storage Systems is projected to reach 74 GW by 2031-32. Currently, the country has about 176 GW potential in Hydro PSPs, with 4.7 GW operational, 4 GW under construction, 3.6 GW approved, and around 60 GW under survey and investigation.

CEA, with the support of CWC, GSI, CSMRS, MoEF &CC, and Hydro PSP developers, aims to achieve these targets on a mission-mode basis.