Torrent Power lands 1.5GW pumped hydro storage project – a game-changer for India’s energy sector

Torrent Power Limited, one of India’s largest integrated power utilities, has emerged as the successful bidder to supply 1,500 MW of energy storage capacity through a pumped hydro storage project. The company received a Letter of Intent (LOI) from Maharashtra State Electricity Distribution Company Limited (MSEDCL) on September 17, 2024. This contract represents a monumental step in India’s renewable energy landscape as it is the first long-term pumped storage capacity LOI to be awarded in the country.

Under the agreement, Torrent Power will provide the 1,500 MW capacity from its upcoming pumped hydro storage facility in Raigad District, Maharashtra. The project will offer a storage capacity of 12,000 MWh, capable of a scheduled discharge of up to 8 hours per day, with a maximum continuous discharge time of 5 hours. The input energy required for charging the storage facility will be provided by MSEDCL.

The official Letter of Award for the project will be issued once the Maharashtra Electricity Regulatory Commission (MERC) grants the necessary approvals. This project aligns with Torrent Power’s strategy to increase its renewable energy footprint. The company is already committed to establishing 5 to 8 gigawatts (GW) of pumped storage project (PSP) capacity across multiple states, with an investment range of Rs 25,000 to Rs 35,000 crore.

The Future of Energy Storage in India

India’s push toward renewable energy has seen a surge in solar and wind power generation. However, the intermittent nature of these sources necessitates robust energy storage solutions to ensure consistent, dispatchable power. Pumped hydro storage, a mature technology with the ability to store large amounts of energy for extended periods, is increasingly seen as the answer.

Torrent Power’s 1,500 MW project with MSEDCL is poised to play a pivotal role in this regard. The project aims to balance grid fluctuations, store excess renewable energy, and ensure a steady supply during peak demand periods. Industry experts suggest that such projects will be crucial as India works toward meeting its renewable energy targets, reducing carbon emissions, and enhancing energy security.

Torrent Power’s Strategic Expansion

Torrent Power, a Rs 27,183 crore enterprise under the Rs 41,000 crore Torrent Group, is well-positioned to become a leader in India’s renewable energy market. The company currently has an aggregate installed generation capacity of 4.4 GW, including 2.7 GW of gas-based capacity, 1.3 GW of renewable capacity, and 362 MW of coal-based capacity. With nearly 3.1 GW of renewable energy projects under development, Torrent Power aims to achieve a 10 GW renewable capacity by 2030.

In addition to hydro storage, Torrent Power is exploring other green energy pathways such as green hydrogen and green ammonia production. This diversified approach to green energy demonstrates the company’s commitment to sustainability and its proactive stance in capitalising on emerging trends in the energy sector.

Expert Opinion: Significance of the Project

The procurement of 1,500 MW of energy storage capacity through a pumped hydro project for a period of 40 years indicates a significant shift in how states like Maharashtra are planning for a sustainable energy future. Industry experts believe that the growing penetration of renewable energy sources in India’s energy mix will make energy storage solutions increasingly critical. The LOI awarded to Torrent Power is expected to pave the way for more such projects, reducing dependence on fossil fuels and enabling a greener energy grid.

The Letter of Intent received by Torrent Power from MSEDCL for a 1,500 MW pumped hydro storage project is a landmark development in India’s energy sector. It not only marks the country’s first long-term pumped storage capacity contract but also highlights the growing focus on sustainable and reliable energy solutions. As Torrent Power continues to expand its green energy portfolio, the company is set to play a central role in shaping India’s renewable energy future.