"CEA Proposes Green Regulation Revisions to Boost Hydro Pumped-Storage Projects"

CEA Recommends Allowing Pumped-Storage Projects in Eco-Sensitive Zones

The Central Electricity Authority (CEA) has put forth recommendations to permit the development of pumped-storage projects (PSPs) in eco-sensitive zones, signaling a potential policy shift in the energy sector. The move comes in the wake of environmental concerns and local protests against PSPs in states like Tamil Nadu, Karnataka, Rajasthan, and Maharashtra's Western Ghats.

These recommendations, outlined in CEA's roadmap for establishing 100 gigawatts of hydro pumped storage capacity by 2035-36, could pave the way for PSPs to be developed in areas where they were previously prohibited, such as eco-sensitive zones surrounding protected areas.

The roadmap aims to tackle India's energy storage challenges resulting from the growing presence of variable renewable energy sources like solar and wind in the country's power mix. CEA estimates project a significant increase in India's installed PSP capacity, reaching 87 gigawatts by 2033-34 and surpassing 100 gigawatts by 2035-36.

CEA prioritizes PSPs over Battery Energy Storage Systems (BESS) for their ability to offer flexible grid balancing support and store electricity for extended periods. PSPs utilize the gravitational potential of water to store and produce electricity, making them a valuable asset in India's energy landscape.

The CEA roadmap highlights environmental and forest-related clearances as major hurdles slowing down the development of PSPs in India. It suggests streamlining the clearance processes for PSPs built on existing reservoirs and off-river sites to minimize environmental impact and displacement of communities.

The roadmap also calls for extending Viability Gap Funding (VGF) support to PSPs and proposes a differentiated regulatory approach for renewable projects to ease project development. It recommends exempting certain land areas from forest land diversion calculations to expedite construction processes.

To facilitate PSP projects, the CEA suggests permitting their development within eco-sensitive zones and areas near protected regions. It advocates for a centralized online portal for Forest Rights Act certificates and urges state governments to address local community rights during project allocation.

The roadmap classifies off-stream PSPs as having minimal environmental impact and recommends simplifying clearance procedures for these projects. These proposed changes aim to streamline the approval process and accelerate the deployment of pumped-storage projects in India.