Steps taken to increase production of renewable energy and for setting up Pumped Storage Projects – EQ

In Short : Efforts to boost renewable energy production and establish Pumped Storage Projects include policy initiatives, financial incentives, and technological advancements. Governments promote investment in renewable infrastructure, incentivize project development, and leverage pumped storage technology to enhance grid stability and store excess renewable energy.

In Detail : The Union Minister for New & Renewable Energy and Power has informed that in line with the Prime Minister’s announcement at COP26, Ministry of New and Renewable Energy is working towards the target of 500 GW of installed electricity generation capacity from non-fossil sources by 2030.

Further, in its Nationally Determined Contribution (NDC) submitted to the United Nations Framework Convention for Climate Change (UNFCCC), India has committed to achieving about 50 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.

The Government of India has undertaken several specific measures to increase the production of solar energy, wind energy and Green Hydrogen, which inter alia include:

Waiver of Inter State Transmission System (ISTS) charges for inter-State sale of solar and wind power for projects to be commissioned by 30th June 2025 and graded ISTS charges thereafter,
Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2030,
Launch of new schemes and programs, including Development of Solar Parks and Ultra Mega Solar Power Projects Scheme, Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan Yojana (PM-KUSUM), Grid Connected Solar Rooftop Programme, CPSU Scheme Phase-II (Government Producer Scheme), Production Linked Incentive Scheme under ‘National Programme on High Efficiency Solar PV Modules, National Bioenergy Programme, Renewable Energy Research and Technology Development (RE-RTD) Programme, Schemes for incentives on electrolyser manufacturing and Green Hydrogen production under the National Green Hydrogen Mission.
Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug and play basis,
Laying of new transmission lines and creating new sub-station capacity for evacuation of renewable power,
Setting up of Project Development Cell for attracting and facilitating investments,
Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects,
Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators,
Notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022,
Notification of Late Payment Surcharge and related matters Rules 2022.
Notification of Electricity Amendment Rules 2022 with provision of Uniform Renewable Energy Tariff for Central Pool.
Launch of the National Green Hydrogen Mission with the objective to make India a hub for Green Hydrogen production and exports.

The Government of India has taken number of policy measures to increase or expand hydro power generation capacity including Pumped Storage Projects in the country, details of which are enlisted below:

1. During March, 2019, the Government approved ‘measures to promote hydro power which are detailed below:

Declaring Large Hydro Power (LHPs) (> 25 MW projects) as Renewable Energy source.
Hydro Purchase Obligation (HPO)
Tariff rationalization measures for bringing down hydro power tariff.
Budgetary Support for Flood Moderation/Storage Hydro Electric Projects (HEPs).
Budgetary Support to Cost of Enabling Infrastructure, i.e. roads/bridges. The guidelines for Budgetary Support towards Flood Moderation component as well as towards Cost of Enabling Infrastructure have also been notified by Govt. on 28.09.2021.

2. Waiver of Inter State Transmission System (ISTS) charges has been inter-alia extended to Pumped Storage Projects for which construction work is awarded up to 30.06.2025, subject to certain conditions. Subsequently, part waiver of ISTS charges, in steps of 25% from 01.07.2025 to 01.07.2028, have been extended for PSPs for which construction work is awarded up to 30.06.2028.

3. Ministry of Power has notified Guidelines to promote development of Pumped Storage Projects in the country on 10th April, 2023. Keeping in view the immense utility of the PSPs in grid stabilization as well as meeting the peaking power demand, guidelines have been formulated to promote PSPs and set the direction of its development. The Ministry seeks to promote the development of PSPs across the country with proactive support of the State Governments.

4. The Central Electricity Authority has also published revised Guidelines for Formulation and Concurrence of DPR of PSPs. Under the revised guidelines, the timeline for concurrence of DPR of following category of PSPs, has been reduced from 90 days to 50 days for:

PSPs awarded under section 63 of Electricity Act, 2003 (determination of tariff by bidding process);
PSPs which are part of Integrated Renewable Energy Projects that contain other RE sources such as wind energy, solar energy etc.;
PSPs being developed as captive plants or merchant plants.

Timeline for concurrence of DPR of other PSPs has been reduced from 125 days to 90 days.

Details of PSPs that are currently operational and under development in different states are provided below.

Details of PSPs currently operational and under development

Four (4) no. of PSPs with aggregate installed capacity of 2780 MW are currently under construction in the country. The details are given as under:

#Construction activities at Koyna Left Bank are currently stalled.

As per Section 8 (1) of the Electricity Act, 2003, any generating company intending to set up a hydro generating station shall prepare and submit to the Authority for its concurrence, a scheme estimated to involve a capital expenditure exceeding such sum (presently, ₹1000 Crores), as may be fixed by the Central Government, from time to time, by notification. Accordingly, two (2) no. of PSPs with aggregate installed capacity of 2350 MW are Concurred by CEA and yet to be taken up for construction. The details are given as under:

Further, forty-three (43) no. of PSPs with aggregate installed capacity of 55085 MW are currently under Survey and Investigation in the country. The details are as follows:

Further, the details of total electricity generation in the country, the overall share of renewable energy and the contribution of wind energy in the total generation during the last 3 years, are as follows:

This information has been given by the Union Minister for New & Renewable Energy and Power Shri R. K. Singh, in a written replies to two separate questions, in Lok Sabha on December 21, 2023.