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JSW Energy, one of India’s largest power generation companies, is keen on setting up pumped storage hydropower (PSH) projects in five States which would collectively lead to generation of 10 GW of power.
The Mumbai-based company, which started with its ₹35,500-crore maiden PSH project in Maharashtra earlier this financial year, has been in discussion for similar projects in Karnataka, Andhra Pradesh, Telangana, Orissa and Chhattisgarh, said a top official of the company.
New technology
PSH technology is not too different technology than the one used in conventional hydropower plants. To generate electricity, water flows down from the upper reservoir through turbines that rotate generators to produce electricity. When electricity demand lowers the turbines spin backward to pump the water back into the upper reservoir.
PSH technology is relatively new to India. The Maharashtra project is only the fourth PSH project in the country. Only one PSH plant is operational in India which is on the Sardar Sarovar Dam. Two more are expected to become operational by the end of 2023.
While the memorandum of understanding (MoU) with the Maharashtra government for the 1.5 GW PSH plant was signed in September 2021, JSW Energy signed a letter of intent with the Rajasthan government for 1G W PSH plant recently. The company has got water allocation for both the projects.
Prashant Jain, Joint Managing Director and CEO, JSW Energy, said, “We have applied for environmental and forest clearances and the techno-economic feasibility report is already under preparation. Once that is done, we will submit them to the CEA and post that we will start construction of these projects. There are various other projects totalling up to 10G W which are in advanced stages of allocation and approvals in States such as Karnataka, Andhra Pradesh, Telangana, Orissa and Chhattisgarh.”
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‘PSH plant double efficient’
According to Jain, the capital expenditure (capex) required for PSH projects are less than a quarter of the project cost entailed by a hydropower electric project.
“The capex depends on the project but typically they are between ₹2.5 and ₹3.75 crore per MW. So typically, these projects are 6-hour peaking cycle which entails for approximately 25 per cent PLF (plant load factor). Typically, a hydro power project costs ₹12 crore per MW, achieving 50-55 per cent PLF. But a PSH plant will cost less than 25 per cent of the project cost and half the PLF. In terms of efficiency a PSH plant double efficient,” Jain added.
JSW Energy is planning a capex of ₹8,000-₹10,000 crore every year from next financial year onwards. It presently has thermal power plants at Vijayanagar, Ratnagiri and Barmer and a hydropower plant in Himachal Pradesh.
The company’s current operational portfolio comprises 30 per cent renewable energy capacity. This is expected to pivot to around 70 per cent renewable energy by FY25 and around 85 per cent renewable energy by FY30.
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