Policy analyst seeks moratorium on pumped storage plants in river valleys

By A Representative 

A detailed representation submitted on 5 January 2026 by power and climate policy analyst Shankar Sharma has urged key statutory bodies and the Union government to halt approvals for pumped storage power projects (PSPs) in river valleys, citing high ecological costs and the growing viability of battery energy storage systems (BESS) with grid-forming capability as a superior alternative.

The representation has been addressed to the Chairpersons and members of the Expert Appraisal Committee (River Valley and Hydroelectric Projects), the National Board for Wildlife (NBWL), and the Forest Advisory Committee (FAC), as well as to senior officials of the Ministry of Environment, Forest and Climate Change (MoEF&CC). Copies have also been marked to the Union Ministers for Environment and Power, the Prime Minister, and the Vice-Chair of NITI Aayog.

Referring to a recent proposal by Grid India under the Ministry of Power to make grid-forming capability mandatory for battery energy storage systems of 50 MW and above, the representation argues that such systems can technically meet the grid stability and energy management objectives that have traditionally been cited to justify pumped storage plants. According to Sharma, this development undermines the rationale for large-scale deployment of PSPs, particularly in ecologically sensitive river valleys.

The submission notes that grid-forming BESS technology is already operational in countries such as Australia and is becoming a baseline requirement for large-scale battery deployments in markets including the UK, Germany and the United States. It states that by mid-2026, Australia alone is expected to have nearly 10 GW of BESS operational in its national electricity market, with grid-forming capability as a core requirement.

Highlighting industry perspectives, the representation cites energy storage companies such as Tesla, which have publicly argued that BESS offers a more cost-effective, flexible and environmentally sustainable solution than pumped storage. The document lists lower capital and operating costs, shorter gestation periods, higher efficiency, negligible environmental impact and the absence of a need for extensive transmission infrastructure as key advantages of BESS over PSPs.

Against this backdrop, Sharma has raised concerns over plans to harness an estimated 200,000 MW of pumped storage potential identified by the Ministry of Power across more than 100 river valley sites. He argues that such plans could lead to large-scale forest and vegetation loss, particularly in ecologically fragile regions, and calls on MoEF&CC to issue policy guidelines prioritising grid-forming BESS as the preferred option for energy storage.

The representation specifically urges the ministry not to grant approvals for any pumped storage projects in river valleys until comprehensive studies are completed and clear policy guidelines are put in place. As an immediate step, it seeks rejection of the proposed 2,000 MW pumped storage project in the Sharavati Lion-Tailed Macaque Wildlife Sanctuary in Karnataka, stating that the project faces widespread opposition from civil society and local communities.

The submission also draws attention to what it describes as misinformation during a public interaction held in Sagara on 27 December 2025, involving representatives of Karnataka Power Corporation Limited (KPCL) and members of the NBWL. Sharma alleges that KPCL did not disclose that a detailed project report is under preparation for another 1,500 MW pumped storage project across the Varahi river, about 100 km south of Sharavati, which could affect the Someshwara and Mookambika wildlife sanctuaries in Udupi district. He warns that approval of the Sharavati project could set a precedent leading to multiple pumped storage proposals across the Western Ghats of Karnataka.

The representation further cites a NITI Aayog report titled “Energy Storage System – Roadmap for India: 2019–2032”, which places battery storage ahead of pumped hydro for most applications. The executive summary of the report notes that rapid advances in battery technology and declining costs have made batteries the first choice for energy storage, and that identified pumped hydro projects in India have seen little progress over the past two decades.

In conclusion, Sharma has appealed to MoEF&CC and its advisory committees to consider pumped storage projects only as a last resort, after exhausting all credible alternatives, and to prioritise ecological protection and public welfare in decision-making. He reiterates his request for a moratorium on approvals for pumped storage plants in river valleys, beginning with the proposed Sharavati project.