CEA Greenlights Two Hydro Pumped Storage Projects In Odisha And Karnataka In Record Time

The Power Ministry announced on Friday (2 August) that the Central Electricity Authority (CEA) has granted concurrence to two hydro pumped storage plants (PSPs) in record time.

These projects include the 600 MW Upper Indravati in Odisha, being developed by OHPC Ltd (a government undertaking of Odisha), and the 2,000 MW Sharavathy in Karnataka, by KPCL (a unit of the Karnataka government).

According to the statement, the CEA has received numerous proposals for hydro PSPs, totalling around 60 GW, which are currently under survey and investigation for the preparation of detailed project reports (DPRs). Once ready, these DPRs will be uploaded to the CEA website for concurrence under Section 8 of the Electricity Act, 2003.

To expedite the concurrence process in line with the Centre's ease of doing business initiative, the CEA has revised its guidelines, simplifying the DPR preparation and concurrence process for PSPs. Under the revised guidelines, developers can now submit the DPR online after completing the first 13 chapters, with some chapters no longer mandatory.

Approval of cost and financial chapters is no longer mandatory; these chapters are now submitted only for reference and record-keeping to meet legal requirements. Additionally, for closed-loop hydro PSPs, there is no need to submit alternative location plans for reservoirs.

The revised guidelines also include a provision for developers to submit an undertaking stating that the DPR is in line with pre-DPR clearances. This eliminates the need for re-examination, potentially saving 4 to 5 months in the concurrence process.

The process for granting excavation permission at the risk and cost of developers has also been streamlined, allowing for advance action and potentially saving 6 to 8 months in project execution. Developers are advised to conduct investigations and submit reports promptly, enabling parallel activities by appraising agencies and saving an additional 1 to 2 months.

The government has prioritised the development of Energy Storage Systems, particularly PSPs to ensure the energy security of the country. As per Nation Electricity Plan (Generation), the installed capacity of Energy Storage Systems including BESS is projected as 74 GW by 2031-32.

It is worth to mention that there is potential of about 176 GW of Hydro PSPs in the country, out of which 4.7 GW are under operation, 4 GW under construction, 3.6 GW concurred (construction to be started) and around 60 GW under survey and investigation.