CEA Approves 600 MW and 2000 MW Hydro Pumped Storage Projects in Odisha and Karnataka

The Central Electricity Authority (CEA) has granted approval for two major Hydro Pumped Storage Plants (PSPs), marking a significant step in India's energy storage strategy.

The projects include the 600 MW Upper Indravati PSP in Odisha, developed by Odisha Hydro Power Corporation Ltd. (OHPC), and the 2000 MW Sharavathy PSP in Karnataka, spearheaded by Karnataka Power Corporation Ltd. (KPCL). With this fast-track approval process, the government aims to accelerate project timelines and enhance energy security.

In addition to these approvals, the CEA has received a substantial influx of proposals for Hydro PSPs, totaling around 60 GW. These proposals are currently at various stages of Detailed Project Report (DPR) preparation. Once completed, these DPRs will be uploaded to the CEA's website for review and approval.

Further, to streamline the approval process and support the Centre’s ease of doing business initiative, the CEA has revised its guidelines. The key changes include a simplified checklist of required documents, allowing online submissions of DPRs after the initial 13 chapters, and the elimination of mandatory approvals for Cost and Financial Chapters.

In addition, the requirement for an alternative location plan for closed-loop Hydro PSPs has been removed, and the need for DPR re-examination has been scrapped, potentially saving 4 to 5 months. The revised process also includes streamlined early excavation permissions, enabling developers to begin site work sooner and potentially saving 6 to 8 months in project execution.

Further, developers are advised to conduct timely investigations and submit their reports promptly, which could save an additional 1 to 2 months. The government's focus on Energy Storage Systems, including PSPs, underscores its commitment to bolstering the country’s energy infrastructure. According to the National Electricity Plan, the installed capacity for Energy Storage Systems, including Battery Energy Storage Systems (BESS), is projected to reach 74 GW by 2031-32.