New Delhi: A Parliamentary panel has recommended that state-owned NHPC Ltd accord the highest strategic priority to its proposed 20,000 MW pumped storage project (PSP) pipeline, saying the projects are critical for strengthening India’s power grid and supporting the country’s clean energy transition, ANI reported.
In a report tabled in Parliament on Aug. 6, the Committee on Public Undertakings (CoPU) also recommended that the Ministry of Power expedite site allotments, statutory clearances and introduce off-take guarantee mechanisms to facilitate timely implementation of pumped storage projects.
The committee noted that NHPC is developing nearly 20,000 MW of pumped storage capacity across multiple states and has also been designated as the implementing agency for 1,500 MWh of Battery Energy Storage Systems (BESS).
The report said pumped storage projects, with a round-trip efficiency of 79-80% and an operational life of around 100 years, are among the most cost-effective and sustainable technologies for grid-scale energy storage, making them vital for integrating renewable energy from solar and wind power into the electricity grid.
According to the Ministry of Power, India has an estimated pumped storage potential of more than 280,000 MW, while only about 7,100 MW has been installed so far.
The committee said NHPC, with its expertise in hydropower development and existing reservoir infrastructure, is well positioned to spearhead the country’s pumped storage expansion.
The panel also reviewed the impact of the Glacial Lake Outburst Flood (GLOF) that forced the shutdown of NHPC’s 510 MW Teesta-V hydropower project, resulting in a generation loss of more than 3,770 million units over two years.
It recommended that NHPC adhere to its target of recommissioning the Teesta-V project by June 15, 2026, and submit monthly progress reports to the Ministry of Power.
The committee further recommended that NHPC undertake comprehensive manpower planning aligned with its long-term capacity addition programme. It also commended the company for exceeding its mandatory corporate social responsibility (CSR) spending, with an expenditure of Rs 109.64 crore in FY25 against the required Rs 82.30 crore, and recommended the adoption of an outcome-based framework to assess the impact of CSR projects and publication of a dedicated annual CSR report.
