15 pumped hydroelectric storage projects under PPP for 14,500 MW

CHENNAI: As part of its plan to generate 50 per cent of its energy through renewable energy sources by 2030, the state government has proposed to set up 15 pumped hydroelectric storage projects (PSPs) under the Public Private Partnership (PPP) mode with a total capacity of 14,500 MW at Rs 77,000 crore in the next seven years.

“Pumped storage hydroelectric projects will be established under PPP mode to meet the peak hour power demand in the state. The 500 MW pumped hydroelectric storage project being constructed at Kundah will be operational by 2024-25. The government will bring out a comprehensive policy to promote investment in pumped hydroelectric storage in the state,” Finance and Human Resources Management Minister Palanivel Thiaga Rajan said in his budget speech for 2023-24.

The PSPs comprise two water reservoirs connected through a tunnel or underground pipe at different heights.

When there is more electricity production and less demand, these projects pump water from the downward reservoir to the upward reservoir.

When more energy is needed, water is pushed from the uphill to the downhill via a turbine to produce the required power instantly. Considering the infirm nature of solar and wind power generations, the PSPs provide grid stability.

SPV to harness solar, wind potential

With a solar energy potential of 20,000 MW, onshore wind energy potential of 70,000 MW and offshore wind energy potential of 30,000 MW, Tamil Nadu has immense renewable energy resources and opportunities. “To transform Tamil Nadu into a green powerhouse with more than 50 per cent of power generation from renewable sources by the year 2030, the government will create a dedicated Special Purpose Vehicle. Further, a new policy on repowering windmills in the state will be evolved,” the Finance Minister said.

He added that due to the reforms undertaken by the government, Tangedco’s loss will be reduced to Rs 7,825 crore in 2022-23 from Rs 11,955 crore in 2021-22.