Pumped storage projects: Draft PSP policy eyes harnessing Kerala’s potential ‘of more than 6 GW’ and attracting investors

The policy will seek to encourage public sector units, cooperatives, local self-governments and private players to take up the development of PSPs.

The draft Kerala Pumped Storage Hydropower (PSP) Policy - 2024, currently being examined by the State government, envisages harnessing Kerala’s “potential of more than 6 gigawatts (GW)“ of PSP capacity and attracting public and private investment for the development of PSPs.

The policy will apply to all types of PSPs, except the ones identified by the Kerala State Electricity Board (KSEB), the State power utility, for development and those utilising KSEB dams, says the draft prepared by the Energy Management Centre, Kerala (EMC). The policy will seek to encourage public sector units, cooperatives, local self-governments and private players to take up the development of PSPs.

According to the draft, PSPs can play a vital role in guaranteeing affordable electricity to consumers during peak hours and energy security for Kerala. Further, they bring more flexibility to the grid for “reliable, high-quality delivery of electricity” in the emerging scenario of increased renewable energy (especially solar energy) penetration.

PSPs, says the draft, “are the most mature” grid-scale energy-storage technology that provides GW-GWh level of storage. “Going forward, more sources of grid flexibility will be needed given the aggressive renewable energy targets of India for 2030 and 2070. As battery storage solutions undergo gradual scaling up to meet short-term grid storage needs, PSPs emerge as a crucial facilitator in incorporating higher proportions of solar and wind energy,” it says.

Pumped storage hydro power makes use of two reservoirs at different elevations. When electricity demand is low - say, during daytime - water is pumped into the upper reservoir, ideally using power from renewable energy sources. When electricity demand is high, the water is released downstream to work the turbines in power stations for producing electricity.

Operation period

The draft recommends a ten-year operational period for the policy. It further calls for the appointment of EMC as the State nodal agency for PSPs, and the creation of a PSP Cell at EMC and a State-level committee headed by the Chief Secretary. The PSP cell would identify potential sites, prepare feasibility studies and guidelines and undertake periodic reviews of projects.

According to the draft, the KSEBL, as the State distribution company, would have the right of first refusal or purchase on power generated by the investors at tariffs and terms set by the State Electricity Regulatory Commission. In the event of a developer leaving a project or abandoning it, the government would have the right to take over the project or transfer it to another agency without the payment of compensation.

PSPs are expected to contribute to Kerala’s plan to become a 100% renewable energy-based state by 2040 and net carbon neutral by 2050. Both the EMC and KSEB have identified potential sites for PSPs. EMC has identified ten sites, while the KSEB has received in-principle nod from the government to go ahead with two projects in its own list for augmenting internal power generation.

Published - November 25, 2024 06:51 pm IST