It is well known that to curb pollution and further deterioration of the planet’s environment – we need to phase out the fossil-based power generation systems. Although we are too late to address the causes behind our planet’s environmental degradation, of late almost all the countries have started harnessing energy from the renewable sources. Nowadays, almost two thirds of the net annual power capacity additions across the globe are solar and wind.
However, the challenge is availability of renewable energy is highly unpredictable; and due to its variable nature, smoothly integrating it with the national grid system is not an easy task. Thus, there is no alternative but to develop more and more energy storage facilities.
Out of all the energy storage technologies, today, for large-scale energy storage, Pumped Hydro Energy Storage (PHES) is the best option. PHES holds about 96% of global storage power capacity and 99% of global storage energy volume. Eventually, the PHES market is growing. The first known use cases of PHES were found in Italy and Switzerland in the 1890s, and it was first used in the United States in 1930. PHES technology is known in different names, viz: Pumped Storage Hydropower (PSH), Hydro Pumped Storage (HPS), Pump Storage Power (PSP), Water Battery etc.
What is PHES technology?
The US Department of Energy explains it very briefly, nicely and accurately. Accordingly, the “Pumped Storage Hydropower (PSH) is a type of hydroelectric energy storage. It is a configuration of two water reservoirs at different elevations that can generate power as water moves down from one to the other (discharge), passing through a turbine. The system also requires power as it pumps water back into the upper reservoir (recharge). PSH acts similarly to a giant battery, because it can store power and then release it when needed.”
Source: https://bit.ly/3WyXGCs
A few large PSH plants across the globe
Many PSH stations are in operation across the globe today, and their sizes also vary. China is leading the space today.
Fengning Pumped Storage Power Station: According to the information available from Wikipedia, this is a pumped-storage hydroelectric power station situated at about 145 km (90 mi) northwest of Chengde in Fengning Manchu Autonomous County of Hebei Province, China. Construction of the power station began in June 2013 and the first generator was commissioned in 2019, the last in 2021. Project cost was US$1.87 billion.
On April 1, 2014, Gezhouba Group was awarded the main contract to build the power station. It was constructed in two 1,800 MW phases. It was completed in late 2021, and became the largest pumped-storage power station in the world with an installed capacity of 3,600 MW.
Bath County Pumped Storage Station: As per the available information from Dominion Energy, this is owned jointly by Dominion Energy (60%), Bath County Energy, LLC (approximately 24%) and Alleghany Power System (approximately 16%). The station has a net generating capacity of 3,003-megawatts (6 units). Its license was issued on January 1977 and commercial operation began in December 1985.
The station’s lower Reservoir Dam is 135 feet high and 2,400 feet long, containing 4 million cubic yards of earth and rock fill. It consists of 555 surface acres, and water level fluctuates 60 feet during operation. Upper Reservoir Dam is 460 feet high and 2,200 feet long, containing 18 million cubic yards of earth and rock fill. It consists of 265 surface acres and the water level fluctuates 105 feet during operation.
Growing market size of the pumped storage hydropower plants
According to Research Nester, a leading service provider for strategic market research and consulting, the global pump hydro storage market was over US$ 3.66 billion in 2023, and is projected to cross 1.28 trillion by the end of 2036 – growing at more than 10.2% CAGR during 2024 to 2036. In the year 2024, the industry size of PHS is estimated at US$ 397.04 billion.
As per the independent energy research and business intelligence company Rystad Energy, the pumped-storage hydropower, or simply pumped hydro, is set to play an increasing role in Southeast Asia’s energy transition. This mature technology for large-scale energy storage can bolster grid reliability as fossil fuel generators are phased out in favour of renewable sources. Pumped hydro capacity in Southeast Asia is projected to surge from 2.3 GigaWatts (GW) today to 18 GW by 2033, representing a nearly eight-fold increase in less than a decade, and attracting an estimated total investment of between US$12 billion and US$70 billion.
The recent study, by the leading advisor on management strategy and market research worldwide, International Market Analysis Research and Consulting Group (IMARC Group), states that the Indian pumped hydro storage market size reached US$ 11.3 billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 24.0 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 8.78% during 2024-2032. The growing emphasis on building a robust energy infrastructure, the increasing participation of private players across the globe, along with numerous public-sector undertakings, the augmenting trend of renovating aging dams and promotion of sustainable energy solutions are among the key factors driving the market growth.
The Indian scenario
On April 10, 2023, our union government has published the guidelines to promote development of Pump Storage Projects (PSPs). The government’s view is: Flexible Energy Generation Assets that can supply both Base Load & Peaking Power efficiently and economically are the need of the future and necessary to address the dynamically evolving energy needs of lndia. At present, Variable Renewable Energy Sources (VRE) such as wind and solar are being connected to the grid at a rapid pace owing to their low cost of installation and the thrust on sustainable & green energy.
The energy supply from Variable Renewable Energy Sources (VRESs) can’t be regulated since they are dependent on the time of the day, seasons, and the vagaries of weather. Hence, there is an ever- increasing demand for Energy Storage Assets (ESAs).
PSPS provide the necessary scale of storage and have a long service life of more than 40-50 years. This is much more than any other energy storage technology presently available. This also results in a low cost of delivered energy over the life of the projects. PSPs are also non-polluting and are more environmentally friendly.
Pumped Storage Potential and Development Status: As of April 10, 2023, the CEA estimates regarding on-river pumped storage potential was 103 GW in lndia. Apart from that, a large capacity of off-river pumped storage potential is also available which is being estimated. CEA offered to provide suitable support for identification and evaluation of such potential.
As per TERI’s Discussion Paper that was published on November 2023, “CEA has estimated a storage capacity of 74 GW by 2032. In order to achieve this target by 2032, completion of about 7,900 MW of PSPs per year is necessary. There is already sufficient interest in developers. The need is for bids to be invited and contracts awarded to ensure that storage capacities are created in time to match RE capacity creation. Standard bidding documents would put the development of pumped storage plants on fast track.”
Recently, during his visit to the 2,400 MW Tehri Hydro Power Complex in Tehri Garhwal, Uttarakhand, our union power minister Manohar Lal Khattar reviewed the progress on the river joining works, a vital aspect of integrating the Tehri PSP (4×250 MW = 1,000 MW) into the existing water management systems.
In order to ensure that Hydro PSPs get commissioned on a fast track, thereby accelerating the growth of India’s renewable energy and energy storage capacity, Central Electricity Authority (CEA) has accorded concurrence to two Hydro PSPs namely, 600 MW Upper Indravati in Odisha being developed by OHPC Ltd (A Government of Odisha Undertaking) and 2,000 MW Sharavathy in Karnataka being developed by KPCL (A Government of Karnataka Undertaking) in record time. CWC, GSI, CSMRS and the stakeholders have jointly fully supported CEA on mission mode.
CEA has also received huge number of proposals of Hydro PSPs (worth around 60 GW), under Survey & Investigation, which are at various stages of preparation of DPR. After preparation of DPRs, these PSPs will be uploaded by the developers on ONLINE Portal (https://ceaclearance.gov.in/hydro/) for concurrence by CEA under section 8 of Electricity Act, 2003.
Conclusion
Out of 4.75 GW of pumped storage plants installed in our country, 3.3 GW are working in pumping mode, and about 44.5 GW projects are at various stages of development (TERI Report dated January 2024).
We need to accelerate the process of developing the Pumped Storage Hydropower (PSH) projects. Unless and until we satisfactorily create a balance between the energy produced through Wind and Solar installations and energy storage requirements – to feed the national grid as and when required, we won’t be able to ensure 24X7 seamless power supply for the whole country.
It sounds good that Budget 2024-25 has declared that a policy for promoting pumped storage projects will be brought out for electricity storage and facilitating smooth integration of the growing share of renewable energy with its variable and intermittent nature. Let the government walk the talk fast.
By P. K. Chatterjee (PK)
