Status on Pumped Storage Projects (PSPs)

Why in news

The article provides an update on the current status of Pumped Storage Projects (PSPs) in India, including projects under construction and those awaiting commencement, along with recent measures taken to streamline environmental and statutory clearances.

Exam relevance

GS3 · Economy, Environment & Ecology, Governance · Prelims · Mains

Key facts

1. 11 Pumped Storage Projects (PSPs) with an aggregate installed capacity of 15,870 MW are currently under construction.
2. 6 PSPs with an aggregate installed capacity of 8,140 MW have been concurred/appraised by the Central Electricity Authority (CEA) and are awaiting construction.
3. The Ministry of Environment, Forest & Climate Change (MoEF&CC) has enabled appraisal of PSPs under B2 category subject to certain conditions via a notification dated 18.05.2023.
4. Specific Terms of Reference (TOR) for off-stream PSPs were issued by MoEF&CC on 14.08.2023, prescribing baseline data collection for one or two seasons depending on whether the PSP is closed or open loop.
5. Provisions related to survey in forest areas for mining projects have been extended to other development projects, including hydel/PSPs, by MoEF&CC on 20.08.2024.
6. The number of boreholes for surveys and explorations in forest areas for hydel/PSPs has been enhanced by MoEF&CC via a letter dated 10.09.2025.

Prelims pointers

• Current aggregate installed capacity of PSPs under construction: 15,870 MW.
• Number of PSPs concurred/appraised by CEA awaiting construction: 6.
• MoEF&CC notification dated 18.05.2023 allows PSP appraisal under B2 category.
• MoEF&CC notification dated 14.08.2023 provides specific TOR for off-stream PSPs.
• Extension of survey provisions for mining projects to PSPs by MoEF&CC on 20.08.2024.
• Enhancement of boreholes for surveys in forest areas for PSPs by MoEF&CC on 10.09.2025.

Mains practice question

Discuss the significance of Pumped Storage Projects (PSPs) in India's energy transition and grid stability. Analyze the recent measures taken by the government to expedite the clearance process for these projects and their potential impact.

Static linkage

Pumped Storage Projects (PSPs) are a form of energy storage that utilizes two water reservoirs at different elevations. Water is pumped from the lower reservoir to the upper reservoir during periods of low electricity demand and released to generate electricity during peak demand. This technology is crucial for grid stability, especially with the increasing integration of intermittent renewable energy sources like solar and wind power. The Central Electricity Authority (CEA) is the nodal agency for power development in India, and the Ministry of Environment, Forest & Climate Change (MoEF&CC) is responsible for environmental clearances.

Significance

Pumped Storage Projects are vital for India's energy security and transition to renewable energy. They act as large-scale batteries, helping to balance the grid by storing excess renewable energy and releasing it when needed. This reduces reliance on fossil fuels for peak power generation, thereby lowering carbon emissions. Streamlining environmental and statutory clearances, as indicated by recent MoEF&CC notifications, is crucial for accelerating the development of these projects, which are essential for meeting India's growing energy demands and climate goals.