Tangedco has sought for concrete study on the battery storage cost when compared to the cost of pumped storage projects.
According to Tamil Nadu’s budget for 2024-25, 12 locations have been identified for setting up 11,500 MW pumped storage hydro power stations in the State.
In these locations, new pumped storage hydro-electric power stations will be established under public-private partnership with an investment of approximately ₹60,000 crore, it added.
Pumped storage system utilises surplus grid power available from thermal power stations or other sources to pump up water from lower to upper reservoir and reproduces power during peak demand when there is scarcity of power. They are seen as an alternative to battery storage.
At a recent meeting of the Southern Regional Power Committee, Tangedco pointed out that the storage cost of pumped storage projects may come to around ₹5-₹6 per unit.
There is no concrete study carried out on what the price of battery storage will be in the near future. If the battery storage cost is ₹2-₹3 per unit, there may not be much benefit in investing in pumped storage projects, the state utility said.
The Central Electricity Authority may undertake technical study on these aspects, it added.
In response, CEA said the battery storage price may not be as low as ₹2-₹3 per unit and that it was comparing the storage costs on a regular basis. It also said the gestation period of pumped storage projects were considered to be around 5-6 years.
Tangedco requested CEA to arrange for some studies and a clear policy may be brought out on setting up of pumped storage projects. The CEA said it would look into the concerns.
Last month, the International Energy Agency in its Batteries and Secure Energy Transitions report said total capital costs of battery storage is expected to decline by up to 40% by 2030.
