India has 15,870 MW of pumped storage capacity under construction to support renewable energy integration

In addition, six PSPs with a combined capacity of 8,140 MW have been concurred with or appraised by the Central Electricity Authority (CEA) and are yet to be taken up for construction.

The government has taken several steps to accelerate statutory and environmental clearances for PSPs and reduce the time required for project approvals.

Under revised CEA guidelines for the formulation and concurrence of Detailed Project Reports (DPRs), the timeline for concurrence has been reduced from 90 days to 50 days for all types of PSPs. Clearance of inter-State aspects is also not required for such projects.

"Pumped Storage Projects (PSPs) support the integration of renewable energy by storing surplus energy during off-peak periods and supplying power during peak demand," the Ministry said.

The projects provide long-duration energy storage, balancing power and ancillary grid services, including frequency regulation, voltage support and black start capability. These features are expected to support grid stability and reliability while enabling higher penetration of renewable energy.

The Ministry of Environment, Forest and Climate Change has also taken several measures to facilitate the development of PSPs. These include enabling the appraisal of certain projects under the B2 category, issuing specific Terms of Reference for off-stream PSPs and extending provisions related to surveys in forest areas to hydel and pumped storage projects.

The government has further enhanced the number of boreholes permitted for surveys and exploration in forest areas for developmental projects, including PSPs.

To encourage private sector participation, the Ministry of Power notified guidelines for promoting PSP development in April 2023. The government has also provided budgetary support for enabling infrastructure such as roads, bridges, railway sidings, ropeways, communication infrastructure and transmission lines connecting power houses to the nearest pooling point.

A tariff-based competitive bidding framework was notified in February 2025 to facilitate procurement of storage capacity and stored energy from pumped storage plants through open and transparent bidding.

The Central Electricity Regulatory Commission has also provided a 100 per cent waiver of Inter-State Transmission System charges for PSPs for 25 years from the commercial operation date, for projects where construction work is awarded on or before June 30, 2028.

"The measures taken are aimed at encouraging greater private sector participation in the development of PSPs," the Ministry said. (ANI)