India’s 100 GW pumped hydro storage target ambitious but achievable
India’s plan to develop 100 GW of pumped hydro storage capacity by 2035-36 to strengthen its clean, secure and sustainable energy future is a challenging target, but feasible, experts said, at a panel discussion on the criticality of pumped storage projects for India’s energy transition at India Energy Week on Thursday.
“India has announced that its pumped storage capacity will grow to 100 GW, which is amazing, but feasible. So, it's a very challenging target, but this is feasible,” said Frederic Sauze, Executive Board Member and CEO, Andritz Hydropower.
On January 23, India’s Ministry of Power announced its Pumped Storage Project (PSP) plan to meet rising energy storage needs, driven by an increase in non-fossil fuel capacity to 500 GW by 2030 and 701 GW by 2035. The Ministry has pegged the projected storage requirements of 62 GW by 2029–30 and 161 GW by 2034–35. As long-duration storage becomes even more critical beyond 2030, those requirements could further rise to 100 GW of PSPs by 2035–36.
The panel, which also included Debmalya Sen, President, India Energy Storage Alliance, and Mohit Bhargava, Senior Adviser, AM Green Ammonia, highlighted the importance of PSPs as a proven, clean, large-scale, and long-life storage solution.
However, while lauding the federal government’s ambition, which aligns with its 2070 net-zero target, both Sen and Bhargava suggested liberal fiscal measures and policy continuity to propel the sector’s growth.
“A viability gap in funding for pumped hydro has been in the talk for quite some time. It has been quite in talk for more than two years now. It was almost on the verge of getting approved, and then it went back. So every budget, this is one of the recommendations that we give the government, that if you're giving a viability gap funding for battery storage, then why not for pumped hydro?,” Sen said.
“Also, goods and services tax (GST) - it ranges from 5 to 18%. Now that is where it is killing the game. So if it is actually made in India, then why charge a GST which is abnormally high? That is also one of the requests that we have to governments,” he added.
Policy stability
He also sought policy stability. “We say something today, and one and a half years down the line, we say something else. That just disrupts the market. That just is not good for investor confidence as well as developer confidence,” Sen said.
Bhargava said the time has come to put both battery and pumped storage in the same bracket. “Battery and PSP can very easily compete against each other on any given day. There is a need to accelerate the pace of clearances for the projects as well.”
“I was part of that committee which gave so many recommendations to the government. There were many recommendations, including forest clearance, environmental clearance, and so on. So, if many of those could actually be implemented, it will help move the project execution time, which is important for us. Because ultimately, we are looking at storage. We cannot be sitting for 10 years,” Bhargava said.
Bhargava also supported Sen’s suggestion to reduce the GST rate. “The GST can be rationalised for renewable energy. The government has decided to put a 5% GST. PSP can also be considered a larger set or subset of renewables, as most of it will be used for renewables. Probably, 5% GST makes a lot of sense,” he concluded.
