TN’s power move: Develop off-river pumped storage project
. The corporation has identified five sites in Tirupattur, Dharmapuri, Tiruvannamalai, Salem, and Vellore, and received interest from some of the leading private companies in the country
Mettur Dam
CHENNAI: In yet another innovative move to increase the power generation in the State, the Tamil Nadu Green Energy Corporation Ltd (TNGECL) has invited applications from developers to identify Off-River Closed Loop Pumped Storage Project sites in the State.
While Open Loop PSPs are located on natural water sources, Off-River Closed-Loop PSPs are hydroelectric power stations located away from a river or any natural water source. The corporation has identified five sites in Tirupattur, Dharmapuri, Tiruvannamalai, Salem, and Vellore, and received interest from some of the leading private companies in the country
According to the expression of interest floated by the state-run utility, the developer can choose any Off-River Closed Loop Pumped Storage Project site in the State. However, the upper and lower reservoirs should not be located on any river or owned by the State government, State departments, local bodies, PSU or State government agencies at its discretion, cost, risk, and responsibility.
"All statutory clearances that are required from central and State Governments are to be obtained by the developer," said the condition that the corporation has insisted upon.
A senior TNGECL official told DT Next that pumped storage projects are essential for the transition to renewable energy due to their ability to provide reliable and flexible energy storage. "Renewable sources like wind and solar are intermittent, producing energy based on environmental conditions rather than demand. PSPs would help address this intermittency by storing excess energy during low-demand periods and releasing it during peak demand, ensuring a stable electricity supply," the official said.
TNGECL, which is the State-designated nodal agency, may allot PSP sites to private companies as per the Tamil Nadu Pumped Storage Projects Policy (PSP), 2024. If more than one developer qualifies for a particular site, the project would be allotted through a competitive bidding process.
The official said that developers would be responsible preparation of detailed project reports, environmental impact assessment studies, rehabilitation and resettlement studies and other investigations necessary for obtaining environment clearances.
The developer should commission the PSP project within seven years from the date on which TNGECL allots the site. The selected developers would have to finance, construct, operate, and maintain the facilities for a concession period of 40 years, with an option for a 10-year extension.
The TNGECL official added that the developer to strive to procure and consume power within the state. "Charges up to Rs 0.25 per unit for all the power brought for outside the State and up to Rs 0.50 per unit for output power sold outside the State are to be paid by the developer to TNGECL, " the official said.
