Parliamentary Panel Urges NHPC to Prioritise 20,000 MW Pumped Storage Pipeline

The Parliamentary Committee on Public Undertakings (CoPU) has recommended that the National Hydroelectric Power Corporation (NHPC) accord the highest strategic priority to its planned 20,000 MW pumped storage project (PSP) pipeline, while urging the Ministry of Power to expedite site allotments, statutory clearances and off take arrangements for such projects.

The recommendations were made in a report tabled in Parliament. The committee said that dedicated facilitation from the Ministry of Power would be necessary to ensure that the country meets its pumped storage targets and strengthens grid stability amid the growing integration of renewable energy.

The panel noted that NHPC is developing around 20,000 MW of pumped storage capacity across multiple states. It has also been designated as a Battery Energy Storage System (BESS) implementing agency, with 1,500 MWh of storage capacity allocated to it.

The committee highlighted the importance of pumped storage systems for integrating intermittent renewable power. According to the report, PSPs offer round trip efficiency of 79 to 80 percent and can have an operational life of around 100 years, making them among the most cost effective and environmentally sustainable options for grid scale energy storage.

The Ministry of Power estimates that India has pumped storage potential exceeding 2,80,000 MW, while only around 7,100 MW has been installed so far. The committee said both PSPs and BESS would be indispensable to India's clean energy transition and noted that NHPC is well positioned to lead pumped storage development because of its hydropower expertise and existing reservoir infrastructure.

The committee also called for mechanisms to provide off take guarantees for pumped storage projects, along with faster allocation of project sites and prioritisation of statutory clearances. It said these measures would help address project development challenges and support the timely achievement of national PSP targets.

The report also raised concerns over the impact of the Glacial Lake Outburst Flood (GLOF) induced shutdown of NHPC's 510 MW Teesta V Power Station. The shutdown resulted in generation losses exceeding 3,770 million units over a two year period, according to the committee.

The panel recommended that NHPC strictly adhere to the June 15, 2026 recommissioning timeline for Teesta V and submit monthly progress reports to the Ministry of Power on the restoration of the project.

Beyond energy storage and generation, the committee recommended that NHPC undertake comprehensive manpower planning aligned with its 10 year capacity addition targets.

The panel also commended NHPC for exceeding its mandatory Corporate Social Responsibility (CSR) expenditure during FY25. The company spent INR 109.64 crore against the required INR 82.30 crore across 24 states and Union Territories. The committee recommended that NHPC adopt an outcome based assessment framework to evaluate the impact of its CSR initiatives on a project wise basis and publish a dedicated annual CSR report.