Adani Green Wins 1.25 GW Pumped Hydro Storage Project From UPPCL

Adani Green Energy Limited (AGEL), has received a Letter of Award (LOA) from Uttar Pradesh Power Corporation Limited (UPPCL) for 1,250 MW of energy storage capacity from Pumped Hydro Storage Projects (PSP). The Panaura PSP project has a minimum commitment of 40 years. It will be located in Sonbhadra district, Uttar Pradesh, and is expected to be completed within the next six years.

India’s clean energy goals necessitate the development of large utility-scale storage projects to integrate renewables into the grid and provide round-the-clock renewable energy. Aligned with this objective, Adani Green Energy has diversified its portfolio to include energy storage solutions alongside its existing solar, wind, and hybrid projects.

Adani Green has plans to add over 5 GW of hydro PSP capacity by 2030. The company has already commenced construction of its 500 MW hydro-pumped storage project at Chitravathi River in Andhra Pradesh, 1,500 MW at Tarali in Maharashtra, and 1,800 MW at Gandikota in Andhra Pradesh.

As one of the most cost-competitive, mature, and scalable technologies, hydro PSP holds significant potential. Hydro PSPs use electricity generated from solar energy during the day to pump water, which can then be released to meet peak-time energy demand at night. Apart from being time-tested and domestically available, PSPs are also the cleanest and safest technology for energy storage. They offer numerous benefits, including grid stability, peak shaving, and flexibility in energy management. Additionally, hydro PSPs provide frequency regulation and reserve generation, making them a critical part of a robust and resilient energy infrastructure.

MoP Sets New Bidding Guidelines for Pumped Storage Projects

To further smoothen out the bidding process, the Ministry of Power (MoP) has recently introduced new bidding guidelines to promote the development of Pumped Storage Plants (PSPs), to standardize the procurement framework based on open competitive bidding. These guidelines also establish clear risk-sharing mechanisms among various stakeholders.

The government’s latest notification applies to developers and procurers (End Procurers or Intermediary Procurers) and will be applicable for the procurement of storage capacity or stored energy from existing under-construction, or new PSP projects. The new project aligns with the government’s National Electricity Plan 2023, which foresees a need for approximately 74 GW/411 GWh of Energy Storage Systems (ESS) by 2031-32, including 27 GW/175 GWh from Pumped Storage Plants (PSP) and 47 GW/236 GWh from Battery Energy Storage Systems (BESS).