The government has approved two more hydro pumped storage projects (PSPs) in Maharashtra to move closer towards the country’s renewable energy (RE) goals. The Central Electricity Authority (CEA) green-lighted PSPs including a 1,500 MW Bhavali PSP being developed by JSW Energy, and 1,000 MW Bhivpuri PSP being developed by Tata Power.

The hydro PSPs will collectively provide a storage capacity of more than 15 GWh. This large-scale energy storage will help meet the peak demand during non-solar hour leading to grid stability, allowing for faster renewable energy integration, as per the Ministry of Power. The approval of these projects, spearheaded by private developers, shows the increased role of private sector in driving energy transition.

During FY25, CEA has targeted to concur 15 hydro PSPs of 25,500 MW capacity, out of this four PSPs have already been concurred. The share of renewable energy, including hydro, in the country’s power generation is projected to rise to 35 percent by FY30. Last week, the Union Cabinet approved the revised scheme of budgetary support for the cost of enabling infrastructure for hydro electric projects (HEP) with a total outlay of Rs 12,461 crore. 

The modified scheme of the Ministry for a cumulative generation capacity of about 31,350 MW would be implemented from FY25 to FY32.