Regulatory Changes for Hydro Pumped-Storage Projects (PSPs)

The Central Electricity Authority (CEA) is advancing a regulatory overhaul to accelerate hydro pumped-storage project (PSP) development. This initiative seeks to boost India's energy storage capabilities amidst rising renewable energy integration.

Key Recommendations

• Eco-Sensitive Zones (ESZs) Access:
  • Allow PSPs within ESZs and up to 10-km aerial distance from protected areas lacking formal ESZ notifications.
  • Relax stringent Western Ghats conditions and create a differentiated regulatory framework for renewable energy projects.
• Environmental and Forest Clearances:
  • Streamline clearance processes as PSPs face less environmental impact compared to traditional hydro projects.
  • Treat PSPs on existing reservoirs and off-the-river sites as a distinct category to expedite clearances.

Development Roadmap

• Capacity Growth Target: Aims for 100 GW of PSP capacity by 2035-36, a significant increase from the current 7.1 GW.
• Viability Gap Funding (VGF): Propose extending VGF to PSPs to mitigate high capital costs, similar to Battery Energy Storage Systems (BESS).

Challenges and Solutions

• Regulatory Bottlenecks:
  • Address difficulties in finding non-forest land for compensatory afforestation by allowing degraded forest land use.
  • Suggest creating a national land bank and a GIS-based repository for monitoring compensatory afforestation.
• Delays in Approvals:
  • Propose allowing construction on non-forest land before forest clearances are fully processed.
  • Exempt surface land above deep underground tunnels from forest diversion calculations.
• Centralized Processing:
  • Create an online portal for Forest Rights Act certificates processing and encourage state proactive measures.

Environmental Considerations

• Minimal Environmental Impact: Classify off-stream PSPs under the "White Category" to simplify environmental and forest clearance procedures.

The CEA's roadmap underlines the need for easing regulations to harness PSP potential while addressing environmental concerns, aiming for a sustainable and robust energy storage future in India.