E-Paper
To push renewable energy, U.P. & MP agree on 40-year hydro-power partnership
The MP Power Management Company Limited (MPPMCL), as an entity, will solicit competitive bids on behalf of both states to acquire 500 MW of pumped storage power.
LUCKNOW: The governments of Uttar Pradesh (UP) and Madhya Pradesh (MP) will collaboratively procure pumped storage hydro power for the next 40 years to address their peak deficit and fulfill renewable power obligation targets.
The MP Power Management Company Limited (MPPMCL), as an entity, will solicit competitive bids on behalf of both states to acquire 500 MW of pumped storage power. U.P. will purchase power from May to October, and MP from November to April, under a 40-year power purchase agreement. This decision follows the recent approval from the U.P. Electricity Regulatory.
The term “pumped storage” refers to the cyclical process of pumping and generating electricity. This process effectively stores and releases energy as needed, in contrast to conventional electricity, which cannot be stored and must be consumed upon production.
“We have granted approval to the U.P. Power Corporation Limited (UPPCL)’s request for the procurement of energy storage capacity for 40 years from inter-state transmission system-connected pumped storage hydro plants through competitive bidding,” said UPERC chairman Arvind Kumar. He further added, “The two states, MP and UP, can purchase this power from any existing or new storage plant set up anywhere in the country.”
The UPPCL, in its petition to the UPERC, highlighted the current tentative power deficit of 2,500 to 3,000 MW during peak hours in UP and MP. The petition highlighted the decision to procure stored energy capacity for six months each to optimise resources and costs.
The petition also noted that the ministry of power had introduced the Renewable Purchase Obligation and Energy Storage Obligation Trajectory-2029-30, mandating the procurement of energy storage capacity. Kumar clarified that the state purchasing power will also supply electricity to the plant to store hydro power, to be released continuously for four-six hours later. “The state providing power for storage can adjust the cost in the payment to the company producing pumped storage hydro power as per the power purchase agreement,” he added.
It is noteworthy that the U.P. government has approved two companies for the installation of three pumped storage projects, the first-of-their-kind in the state. These projects aim to produce pumped storage hydro power totaling 3,250 MW, with a cumulative investment exceeding ₹16,000 crore.
During the Global Investors’ Summit in Lucknow in February, the Torrent company and ACME Cleantech Solutions Pvt Ltd expressed their intent to establish pumped storage plants in U.P. Reportedly, 33 potential pumped storage sites have been identified in the state, and formal agreements are expected to be signed soon. U.P. and MP may collaborate with any of the three proposed pumped storage plants in the state, depending on the outcome of the bidding process initiated by MPPMCL.
