Power policy analyst raises concerns over pumped storage projects in India

By A Representative

In a detailed letter addressed to Sri Pankaj Agarwal, Secretary (Power), Government of India, Shankar Sharma, a noted Power & Climate Policy Analyst, has raised critical concerns regarding the environmental and economic implications of Pumped Storage Projects (PSPs) in India. The letter, copied to key dignitaries including the Prime Minister, Union Ministers for Power, New & Renewable Energy, and Finance, as well as the Vice-Chairperson of NITI Aayog, references a recent High-Level Brainstorming Session on PSPs held in New Delhi, as reported by the Press Information Bureau (PIB).

Sharma questions the absence of a comprehensive national energy policy and the lack of transparent, evidence-based deliberations on PSPs, particularly in ecologically sensitive areas like the Sharavathi Lion-Tailed Macaque (LTM) Wildlife Sanctuary in Karnataka, where a 2,000 MW PSP is proposed. He argues that PSPs, which consume more energy than they generate, should not be treated as power generators but as non-essential loads with significant ecological costs. Highlighting the potential for irreversible environmental damage, especially in river valleys and wildlife sanctuaries, Sharma warns that widespread PSP implementation could exacerbate global warming and harm local ecosystems.

The analyst advocates for Battery Energy Storage Systems (BESS) as a techno-economically viable alternative, citing global trends of declining battery prices and successful large-scale BESS projects, including NTPC Green’s 130 MW/520 MWh BESS tender in Telangana. He questions why India’s energy policies appear to overlook BESS in favor of PSPs, despite the former’s faster deployment potential and lower environmental impact. Sharma also references international examples, such as Spain and South Australia, where BESS supports grids with high renewable energy penetration, urging Indian policymakers to learn from these models.

Criticizing the lack of stakeholder engagement, Sharma notes that civil society concerns have been consistently ignored, with no invitation extended to contribute to the brainstorming session despite multiple representations. He calls for a diligent cost-benefit analysis of PSPs versus BESS, transparent policy formulation, and greater inclusion of civil society in strategic energy decisions to ensure sustainable development.

Sharma concludes by requesting the Ministry of Power to share highlights and decisions from the brainstorming session, emphasizing the need for policies that prioritize the welfare of all sections of society, including flora, fauna, and the environment.

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