The State government has released the Tamil Nadu Pumped Storage Projects Policy (PSP) 2024, which aims to harness the potential of PSPs to support sustainable energy growth, meet renewable energy targets, attract investments, integrate renewable energy into the grid and create job opportunities, contributing to the overall development and energy security of the state.
Tamil Nadu has an installed wind energy capacity of over 9,000 MW and installed solar energy capacity exceeding 7,800 MW and the total installed green energy capacity is 22,628 MW, as per the policy.
One of the significant challenges with renewable energy is its variability. Solar power generation peaks during the day, while wind power is often strongest at night. Pumped storage projects offer a solution by storing excess energy generated during periods of low demand and releasing it during peak demand. This capability allows for better integration of renewable energy into the grid, optimizing the use of green energy and reducing reliance on fossil fuels, it noted.
As per the policy, pumped storage projects can have a lifespan of several decades with minimal degradation in performance.
Pumped storage projects, utilizing water and gravitational energy, present a more environment-friendly and sustainable option for large-scale energy storage, it added.
The construction, operation and maintenance of PSPs create direct employment opportunities for skilled and unskilled labour which include jobs in engineering, construction, operations and technical maintenance, the policy said.
PSP projects stimulate the local economy by creating indirect employment opportunities in supporting industries such as manufacturing, supply chain logistics and services. Ancillary businesses such as equipment suppliers, maintenance services and local vendors also get benefited, besides creating opportunities for training and skill development programmes to equip the local workforce with the necessary skills for PSP-related jobs, it said.
PSP policy will remain in force for five years and reviewed thereafter. Tamil Nadu Green Energy Corporation Limited (TNGECL) shall be the State Designated Nodal Agency for implementing this policy.
Pumped storage projects installed and commissioned during the operative period shall become eligible for the benefits and incentives declared for a period of 40 years from the date of commissioning, which is extendable by 10 years.
PSPs can be set up either for Captive/ Group Captive use and/ or for selling of electricity to the utilities within or outside the States or third parties within the State.
The policy also lays down the process allocating the sites for PSPs which can be either on-river PSP sites or off-river Closed Loop Sites.
The sites will be allocated to Central or State Public Sector Undertakings, through public private partnership mode and through project proponent mode (which are for off-river Closed Loop PSP sites.
The Developer has to pay annual charges of up to ₹ 20,000/MW and one time facilitation charges as determined by State Nodal Agency, besides the water charges to Water Resources Department.
Among the other incentives proposed for pumped storage projects are 50% concession on stamp duty and registration fees, exemption in electricity taxes on final consumption of electricity within the State for a period of 10 years from completion date, and no water cess.
Published – September 08, 2024 04:30 pm IST
