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Guidelines to promote development of Pump Storage Projects (PSP), 2023

Publication Year: 2023

Policy Type : National Policy

Policy Highlight :

Project Allotment: Direct nomination to PSUs or transparent two-stage bidding for private developers.
Right of First Refusal: Host state may retain up to 80% capacity at regulated tariff; remaining 20% can be freely traded.
Exemptions: Off-stream closed-loop PSPs may receive EIA/public-hearing exemptions and relaxed free-power/local-area obligations.
Infrastructure Support: Central support for roads, bridges and transmission connectivity.
Mine Reuse: Exhausted/abandoned mines can be repurposed as PSP reservoirs.
Ancillary Services: PSPs can monetize grid services such as reserves, reactive power, black start and peak supply.

Abstract:

The document provides Government of India guidelines to promote the development of Pumped Storage Projects (PSPs) for grid stability and renewable energy integration. It highlights PSPs as a reliable, long-duration energy storage solution essential for India’s clean energy transition and net-zero goals. The policy includes measures such as concessional charges, faster clearances, competitive bidding, financial support, and market reforms to encourage investment in PSP infrastructure. It also emphasizes environmental sustainability, indigenous technology use, and improved power system reliability through energy storage and ancillary services.

Document Details

Country: India

Publisher/Organisation: India, Ministry of Power

Theme: Policy, Regulation, and Standards

Subtheme: National and State-Level Policies & Regulations

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Energy Storage in India

Guidelines to promote development of Pump Storage Projects (PSP), 2023

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