3 GW Of Pumped Hydro Projects Set To Boost MSEDCL’s Portfolio

60 GW Of PSP Projects Under Survey, Minister Tells Parliament

Maharashtra is set to witness the addition of 3 GW of energy storage projects through Pumped Storage Projects (PSPs). These new projects are expected to meet the growing demand of the Maharashtra State Electricity Distribution Company Ltd. (MSEDCL).

Two companies, JSW Neo Energy Limited and Torrent Power Limited, have secured contracts to build the projects. They recently won PSP tenders from MSEDCL, each securing 1500 MW of PSP capacity in the state. According to MSEDCL’s projections, the peak demand for 2024-25 is expected to reach 24,963 MW, and is forecasted to rise to 41,956 MW by 2033-34.

MSEDCL has informed the Maharashtra Electricity Regulatory Commission (MERC) that its current power demand is primarily met through long-term contracts with Maharashtra State Power Generation Company Limited (MSPGCL), NTPC Limited, Nuclear Power Corporation of India Limited (NPCIL), Independent Power Producers, and Renewable Energy Generators.

“In case of any shortfall in generation to meet the power demand, MSEDCL procures power through short-term power purchase tenders or power exchanges. Further, based on available data until 2029-2030, MSEDCL will need to purchase additional power during peak hours, alongside its long-term contracts,” it noted.

The cost per unit of clean power from the PSPs is estimated at Rs 6.77 per unit from JSW Neo Energy and Rs 6.80 per unit from Torrent Power Limited. These rates are lower compared to other PSP projects in the country. For instance, the 1 GW Tehri PSP has a rate of Rs 9.70 per unit, while the Naitwar Mori Hydro Electric Power Project is priced at Rs 9.51 per unit.

MERC has recently approved the tariffs for these projects, discovered through MSEDCL’s competitive bidding process. These tariffs will be fixed for a duration of 40 years.

“The Commission adopts the tariff discovered through competitive bidding under Section 63 of the Electricity Act 2003 for the procurement of 3000 MW (including 2000 MW under Green Shoe option) energy storage capacity for 40 years from Pumped Hydro Storage Plant/s,” MERC stated in its order approving the tender tariffs.