NTPC plans MoU for 3GW pumped hydro storage project in TN

NTPC India Ltd, the leading power producer in the country, is considering the development of a 3 GW pumped hydro storage project in Tamil Nadu.

During its Q3FY24 earnings call, the company management revealed plans for a total capacity of about 8 GW, having previously discussed a target of 14 GW across nine states. Now, the focus is on 8 GW projects, with Tamil Nadu earmarked for a 3 GW storage project. NTPC is in advanced talks to formalize an agreement with the state government for this endeavor.

Additionally, NTPC is strategizing 1,200 MW of storage capacity in Chhattisgarh, along with 1,000 MW each in Gujarat and Meghalaya.

When discussing the timeline for these storage projects, NTPC management estimated approximately two years for the detailed project report, with construction expected to take 5-6 years.

Pumped hydro storage (PHS) and battery energy storage systems (BESS) are currently deemed commercially viable, with PHS particularly attracting investments. PHS operates as a gravity-based energy storage technology, featuring two water reservoirs at different elevations. Excess power on the grid is utilized during low-demand periods to pump water from the lower to the upper reservoir via reversible turbines. Conversely, during peak demand, water is released into the lower reservoir, driving turbines to generate electricity.

PHS dominated grid-scale energy storage tender issuance in 2023, accounting for approximately 56%. Notably, Madhya Pradesh issued a significant tender in June 2023 for 16.4 GW PHS capacity spread across 14 sites, according to a recent report by IEEFA & JMK Research.

HBL