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India: Centre Mulls Viability Support for Pumped Storage Projects

After announcing a Rs 3,760-crore viability gap funding (VGF) support for battery energy storage systems, the Centre is mulling a VGF scheme for pumped storage projects (PSP) as well.

 

The policy framework for pump hydro is likely to be finalized soon and a VGF support would be provided similar to those announced for battery energy storage systems (BESS). As battery storage can cater to only four-six hours of the day, pumped hydro projects are needed to back it up.

 

In PSPs, excess energy is used to pump water to an upper reservoir when power demand is low, and during peak demand, water is released, turning a turbine which generates electricity.

 

PSPs and battery storage projects are often used alongside solar or wind to ensure power stability, as these will help integrate intermittent renewable energy with the grid and support dispatchable RE power.

 

Hydro Pumped Storage Projects are expected to contribute towards achieving the government's commitment of 500 GW installed capacity from non-fossil fuel sources by 2030, and net zero carbon emissions by the year 2070.

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