ANNOUNCEMENTS
The "Technical and Economic Feasibility Study of Pumped Storage Projects in India" report sheds light on the versatility of Pumped Storage Plants (PSPs) and their significance as vital components of the grid. It explores how PSPs can address the intermittent nature of renewable energy sources, aligning with India's energy transition goals. The report categorizes PSPs into three types: off-stream open loop, off-stream closed loop, and on-stream open loop. Through a comprehensive literature review, it is evident that the majority of planned projects in India fall under the off-stream closed loop category, which boasts numerous advantages. This report focuses on elucidating these advantages and delves into the reasoning behind developers' preference for this type of pumped storage in their future projects.
Additionally, the report introduces an independently developed Excel-based economic feasibility checker. This tool considers various parameters such as weighted average cost of capital, plant degradation rate, pumping and generation hours, annual cashflows, taxes, transformer efficiency, interest during construction (IDC), and auxiliary consumption. By utilizing the feasibility checker, stakeholders can obtain outputs like pre and post-tax internal rate of return (IRR) and the levelized cost of storage (LCOS). It emphasizes the need for a differentiated tariff mechanism for pumped storage plants in India to instil confidence among all stakeholders in the value chain. Furthermore, the report identifies gaps and potential hurdles that India may encounter in rapidly adopting this mature, reliable, and cost-effective technology.
Despite pumped storage plants being present in India for nearly four decades, the operational capacity currently stands at only 3.3 GW. This report provides pathways for developers and the government to leverage the country's massive 103 GW potential. It serves as a research-backed guide to the current market landscape in India, introducing readers to key PSP developers, states leading in PSP development, average plant sizes, and the cost-effectiveness of PSPs within existing policies and fiscal frameworks.
Regarding environmental impact, the report highlights that off-stream closed loop pumped storage plants have minimal effects, leading to exemptions from environmental impact assessments and public hearings. It sheds light on several market drivers that can facilitate the widespread adoption of Pumped Storage Projects in India. By addressing these aspects, this report lays the foundation for informed decision-making and the realization of India's pumped storage potential.
