States favour exemption of environmental clearance for Pumped Storage hydel projects

PS is a hydropower project where water moves from two reservoirs at different elevations to store energy and generate electricity.
Image used for representational purposes only
Image used for representational purposes only

NEW DELHI: A few states favour the idea of the Union government exempting the environmental clearance process for smaller size Pumped Storage (PS) hydel power projects. The government termed the project causing a minimal environmental impact as it was mostly created on the existing hydroelectric power projects, reservoirs or off-the-river projects.

PS is a hydropower project where water moves from two reservoirs at different elevations to store energy and generate electricity. It will help India steer towards its commitment to reduce emissions by generating power from non-fossil fuels by 2030. Finance Minister Nirmala Sitharaman first proposed this energy storage project in her budget speech in 2023.

The Ministry of Power (MoP), which prepared draft guidelines, termed the environmental and forest clearance (EFC) process as very cumbersome.EFC consists of several stages including transparent public consultation and incorporating their feedback into the project.

The draft guideline is shared with state governments and concerned ministries such as Economic Affairs, Environment and Climate Change, New& Renewable Energy, Mines and Coal for their comment till February 2. 

It is learnt that Bihar, Madhya Pradesh and Chhattisgarh favoured the idea of PS projects exemption from EFC.

Sanjeev Hans, Principal Secretary to the Department of Energy, Bihar supports that proposal, terming it as the need of the hour.

“We are in favour of the exemption of EFC for the PS project up to 25 MW,” says Hans. He further noted that large hydro projects cause lots of displacement, and affect the environment.

A senior engineer from the Madhya Pradesh government’s water resource department also favoured the EFC exemption for the PS.

“We have given our positive feedback to the draft favouring EFC exemption,” he said anonymously. 

Last year, the Chhattisgarh government had already selected five sites for the PS projects.

“It would help the state to set up projects without delay once exempted from EFC,” said a Chhattisgarh official.

The Central Electricity Authority estimated on-river pumped storage potential to be 103 GW. Meanwhile, the government has already selected 56 sites in 16 states for PS projects, the majority of which are in Maharashtra(20).

But the experts feel even though the project has a comparative advantage over traditional hydel power, exempting PS projects from EFC is not prudent. 

“The way the government had picked out 56 sites without its environmental, utility and financial consequences, it becomes a matter of concern for every citizen,” says Shripad Dharmadhikary of Manthan Adhyan Kendra. She analyses public policy issues related to water and energy sectors.

He cited the example of the Sardar Sarovar Project of Gujarat, which has PS provision but is not working.

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