Govt. Backs Pumped Storage Expansion, Relaxes CEA Approval Norms for Select Projects

The Ministry of Power has issued a fresh notification easing approval norms for certain hydro projects while retaining oversight for large-scale developments.

According to the notification, all hydroelectric generating stations with an estimated capital expenditure exceeding INR 3,000 crore will require the concurrence of the Central Electricity Authority (CEA). This provision ensures that large investments in the hydro sector undergo proper scrutiny before implementation.

However, the government has carved out a major exemption for off-stream closed-loop pumped storage schemes, which are considered critical for India’s renewable energy transition. Regardless of their project cost, such pumped storage systems will no longer require CEA concurrence, significantly cutting down regulatory hurdles. Developers of these exempt projects may, if they choose, seek technical guidance from the CEA.

The notification also makes it mandatory for developers to comply with the provisions of the National Dam Safety Act, 2021, reinforcing safety as a non-negotiable requirement in hydro and pumped storage projects.

This move supersedes the earlier Ministry of Power notification dated April 18, 2006. By relaxing approval norms for pumped storage while keeping checks on large hydro projects, the government aims to balance the need for safety oversight with the urgency of expanding energy storage infrastructure.