Chapter - 2 Justification of The Project From Power Angle

Dangari Pumped Hydro Electric Storage
Project, (4 x 350 MW)
Feasibility Report
CHAPTER – 2
JUSTIFICATION OF THE PROJECT FROM POWER ANGLE
Introduction
Power infrastructure is one of the most critical components for prosperity and economic
growth of country & Electricity is an essential component of infrastructure development of
the country as it affects a country’s economic growth and welfare. The development of
requisite power infrastructure is key for sustained growth of Indian economy. With the
increase in economic activity, the demand for power is also increasing. India’s Electricity
sector is one of the most diversified in the world. The sources of power generation in India
range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear
power to renewable sources such as wind, solar, and bio-mass, Municipal solid waste
(MSW), etc. India has witnessed electricity demand increase of around 6 % during the last
five years and it is projected that the increase in electricity demand is likely to be 6 % per
year for next decade. To meet the ever-increasing electricity demand, power sector in India
has grown considerably. The enactment of Electricity Act, 2003, has brought in
revolutionary changes in almost all the areas of the sector. Through this Act a conducive
environment has been created to promote private sector participation and competition in
the sector by providing a level playing field. This has led to significant investment in
generation, transmission and distribution areas.
The peak power deficit during 2022-23 has been 4% and Energy Deficit has been 0.5 %
only. This marginal shortage seen is on account of reasons other than unavailability of
Generation Capacity.
The installed Renewable energy capacity (including large hydro) has increased from 76.37 GW
in March 2014 to 167.75 GW in December 2022, i.e. an increase of around 2.20 times. Total
Solar Power Capacity in the country has increased from 2.63 GW in March, 2014 to 63.30 GW
in December 2022, i.e., an increase of 24.07 times.
Power Sector in All India/ southern Region/ Tamilnadu
The Installed Capacity of the country as on 31.1.2024 was 429961.4 MW comprising of

240436.87 MW thermal, 7480 MW Nuclear and 182044.53MW renewables.
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Figure 2.2. 1 Installed Capacity and Electricity Generation in India
The country has significant potential of generation from renewable energy sources. All
efforts are being made by Government of India to harness this potential. The Installed
capacity as on 31st January, 2024 from renewable energy sources is 182044.53 MW. The
total renewable installed capacity comprises of 46928.17 MW of Hydro, MW
of wind, 53996.54 MW of solar, 10682.36 MW of bio-Power & waste power and 4848.9MW
of small hydro plants

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Figure 2.2. 3 All India Re- Installed Capacity as on 31.03.2022
Table 2.2. 1 The total installed capacity of India is 412212.14 MW as on 28.02.2023

in which contribution of Renewable is 168963.23 MW.

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In western region, the total installed capacity is of 134278.82 MW consisting of 86779.58

MW of thermal, 1840 MW of nuclear and 45659.24 MW of renewable as on 28.02.2023.
Table 2.2. 2 Installed Capacity of Power Utilities in the States/UTs of Western Region
As on 31.03.2022, a capacity addition of 54,779.15 MW from renewable energy sources

including large hydro has been achieved during the period 2017-2022.The details of
capacity added source wise during 2017-22 is given in Table 2.2.3
Table 2.2. 3 Capacity addition from Renewable Energy Sources during 2017-22 as on
31.03.2022
Source Capacity
Large Hydro (including PSP) 2138

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Solar 41707.72

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Wind 8077.81
Biomass & Waste to Energy 2386.58
Small Hydro 469.04
Total 54779.15
Figure 2.2. 4 Capacity Addition from RE Sources during 2017-22
Source: Central Electricity Authority (CEA)
During period, 2017-22 capacity totaling to 2138 MW from Large Hydro sources has been
achieved as on 31.03.2022 comprising of 1100MW of Central Sector, 341 MW of State
Sector and 697 MW of Private Sector. This also includes projects totaling to 100 MW which
were at various stages of construction and originally not scheduled for the period 2017-22
but have also been commissioned.
The projected region wise electrical energy and peak demand figures have been arrived at
based on the present ratios of actual region wise demand over all India demand.

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Table 2.2. 4 Region wise Electricity Energy requirement & Peak Electricity Demand
The electrical energy requirement and peak electricity demand on all-India basis has been
projected at 1874 BU and 272 GW in 2026-27 & 2538 BU and 363 GW in 2031-32
respectively.
Table 2.2. 5 State wise electrical energy consumption (in MU) in Western Region
Source: CEA
Table 2.2. 6 State wise electrical Peak electricity demand (in MW) in Western Region

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Source: CEA

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Pump Storage contribution in stabilizing the Transmission Grid
As of the data taken from the Chhattisgarh State Load Dispatch Centre, the voltage profile
as per last provided report for the month of June 2022. The voltage profile for main 400kV
substations are provided.
Figure 2.2.1. 1 Voltage Profile of 400 KV S/S in June 2022 in Khedamara & Raita
Figure 2.2.1. 2 Voltage profile of 400kV S/S in June 2022 in Korba West & Marwa

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Figure 2.2.1. 3 Voltage profile of 400kV S/S in June 2022 in Jagdalpur & Kurud
As per the voltage profile, there are violation of voltage regulation of +/-5% in all substation.
In this regards, pumped storage Resource are availability of spinning reserve at almost no
cost to the system and regulating grid frequency to meet sudden load changes in the
network. With advancement of technology, pump storage plant now have variable speed
pumped turbine which can quickly shift from motor, to generator, to synchronous condenser
modes, for easier and more flexible operation of the Grid.
Generation Addition up to 2021-22
In the absence of the generation addition program for 13 th Plan period, an estimate was
made considering the ongoing and likely capacity addition for the conventional generation
projects. For the renewable generation projects, we do not have data corresponding to the
175 GW RES target, as such the modeling and analysis was carried out with only the
known RE generation projects. Accordingly, following Exiting, Under-construction/Planned
and Total generation capacity (Conventional) was assumed for these studies.
 During the period 2017-22, the capacity addition achieved from conventional sources
is 30,667.91 MW.
Chapter – 2: Justification of the Project from Power Page 10 of

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Feasibility Report
Table 2.2.2.1: All India State/UT Wise Electrical Energy Requirement –Ex Bus in
MU (2021-22 to 2031-32)
State/ UT 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32
Chandigarh 1606 1737 1783 1827 1869 1911 1953 1997 2047 2107 2157
Delhi 31527 35715 37346 39000 40771 42566 44448 46425 48641 50702 52792
Haryana 55535 62706 66926 71821 77217 82981 89050 95486 103176 108782 114636
Himachal Pradesh 12115 12614 13172 13829 14522 15238 15979 16730 17628 18222 18807
J&K 19324 19568 20811 21382 21800 22507 23700 24912 26132 27239 28294
Ladakh 190 210 233 259 288 321 357 398 443 494 551
Punjab 62851 66464 69686 73493 77571 81959 86536 91359 97237 101061 104928
Rajasthan 89918 101757 112368 119167 126118 133550 141260 149303 158836 165398 171883
Uttar Pradesh 129580 151152 159775 169529 179967 191138 202920 215392 229712 241780 253974
Uttarakhand 15541 16301 17138 18087 19093 20142 21238 22374 23702 24622 25524
Northern Region 418188 468224 499239 528394 559218 592312 627443 664377 707554 740406 773545
Chhattisgarh 31948 36260 38528 41223 44130 47208 50475 53900 57983 60649 63436
Dadar Nagar Haveli 6848 7794 8165 8605 9072 9559 10070 10594 11225 11575 11919
Daman & Diu 2615 2840 2970 3121 3277 3437 3622 3815 4042 4198 4355
Goa 4456 4630 4820 5038 5270 5512 5765 6032 6350 6597 6847
Gujarat 123788 139566 148082 158654 170323 182507 195467 209008 226141 234597 242993
Madhya Pradesh 86521 98863 104600 111424 118751 128844 137111 145662 155770 162540 168854
Maharashtra 172818 183777 191499 200087 209593 219726 229362 239207 251578 258529 264793
Western Region 428994 473729 498665 528152 560416 596793 631873 668218 713089 738686 763198
Andhra Pradesh 68438 72961 78134 84245 90889 98162 105792 113859 123361 130196 137022
Karnataka 72799 75202 77876 80922 84132 88232 91852 95486 99758 102973 105970

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Kerala 26626 27892 29244 30729 32281 33903 35597 37384 39464 41220 42885
Lakshadweep 56 58 60 62 64 66 68 71 73 75 77
Puducherry 2907 3048 3136 3234 3332 3436 3539 3647 3776 3870 3947
Tamil Nadu 109914 115788 122102 129079 136399 144086 152074 160430 170006 178103 186106
Telangana 70871 73229 77503 82316 87414 92967 98578 104383 110971 115862 120549
Southern Region 351611 368179 388055 410587 434511 460853 487501 515259 547409 572299 596557
A&N 338 345 350 357 363 368 373 378 383 389 394
Bihar 36239 41814 45560 49438 53920 58256 62871 67715 73241 78155 82876
DVC 16630 17624 18757 20100 21550 23087 24721 26437 28482 29825 31211
Jharkhand 18355 19334 20677 22112 23846 25463 27140 28873 31096 32484 33799
Odisha 38344 43060 43582 44985 46689 48627 50810 53180 56316 57891 59286
Sikkim 616 651 689 730 773 819 867 919 974 1032 1093
West Bengal 54020 60163 63564 67518 71820 76352 81182 86018 91771 95599 99443
Eastern Region 164542 182992 193179 205240 218961 232971 247963 263519 282264 295375 308103
AP 875 916 964 1012 1064 1117 1170 1227 1289 1347 1397
Assam 10869 11972 12679 13454 14279 15151 16079 17069 18183 19230 20285
Manipur 1029 1089 1152 1218 1289 1363 1441 1522 1610 1703 1794
Meghalaya 2264 2350 2437 2527 2618 2711 2805 2898 2993 3067 3134
Mizoram 823 897 978 1063 1156 1252 1357 1464 1577 1691 1816
Nagaland 867 909 953 997 1041 1088 1134 1182 1228 1272 1299
Tripura 1585 1663 1913 1991 2073 2222 2306 2391 2481 2570 2648
North Eastern 18312 19796 21076 22261 23521 24904 26292 27752 29359 30880 32373
Region
All India 1381646 1512918 1600214 1694634 1796627 1907835 2021072 2139125 2279676 2377646 2473776
Source: 20th EPS, CEA

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Table 2.2.2.2: All India State/UT Wise Peak Electricity Demand – Ex Bus in
MW (2021-22 to 2031-32)
State/UT 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32
Chandigarh 428 435 449 464 478 492 505 519 533 549 563
Delhi 7329 7770 8164 8571 9003 9460 9948 10469 11046 11615 12222
Haryana 12137 12788 13546 14411 15335 16337 17380 18478 19744 20648 21644
J&K 3000 3075 3273 3369 3443 3566 3772 3993 4211 4427 4633
Ladakh 61 65 70 74 79 85 91 97 104 112 120
Punjab 13558 14327 14859 15502 16189 16925 17684 18478 19466 20028 20587
Rajasthan 15803 16291 17906 18959 20030 21175 22358 23590 25048 26048 27032
Uttar Pradesh 24991 26028 27531 29235 31061 33017 35082 37270 39781 41910 44066
Uttarakhand 2474 2603 2742 2905 3072 3249 3433 3623 3847 4004 4159
Northern Region 73367 77767 82688 87457 92476 97898 103650 109714 116745 122134 127553
Chhattisgarh 5029 5358 5708 6132 6592 7081 7602 8152 8805 9248 9713
Daman & Diu 373 405 424 447 470 493 521 549 583 607 631
Goa 703 740 778 818 859 901 945 989 1043 1086 1128
Gujarat 19457 21550 22762 24291 25953 27710 29573 31515 33964 35137 36287
Madhya Pradesh 15941 17009 17874 18914 20024 21592 22826 24091 25596 26534 27386
Maharashtra 28083 30203 31495 32999 34567 36376 38105 39891 42042 43373 44622
Western Region 65437 70963 74704 79137 83986 89457 94748 100246 107050 110981 114766
Andhra Pradesh 12563 13363 14269 15337 16495 17758 19076 20461 22091 23243 24387

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Karnataka 14841 15075 15636 16277 16947 17810 18578 19352 20254 20954 21613
Kerala 4390 4592 4808 5044 5291 5549 5818 6101 6431 6707 6967
Lakshadweep 11 12 12 12 13 13 13 14 14 15 15
Puducherry 473 502 517 533 549 567 584 602 624 639 652
Tamil Nadu 16899 17361 18336 19413 20545 21736 22976 24276 25764 27033 28291
Telangana 14176 14663 15704 16877 18138 19529 20968 22488 24215 25639 27059
Southern Region 61165 63424 67143 71362 75861 80864 85953 91285 97440 102379 107259
A&N 60 61 63 64 66 67 69 70 72 73 75
Bihar 6923 7495 8184 8908 9743 10553 11416 12326 13360 14276 15159
DVC 3081 3248 3450 3689 3947 4220 4510 4814 5176 5409 5649
Jharkhand 2835 2994 3163 3362 3576 3808 4048 4297 4597 4800 4997
Odisha 5645 6490 6635 6918 7252 7630 8053 8514 9107 9456 9782
Sikkim 134 141 150 159 169 179 190 201 214 227 241
West Bengal 9090 10150 10726 11395 12123 12891 13708 14530 15507 16164 16824
Eastern Region 26043 28737 30479 32544 34857 37265 39847 42546 45752 48106 50420
AP 170 180 190 201 211 223 234 246 259 271 282
Assam 2138 2376 2526 2689 2861 3045 3240 3449 3683 3905 4128
Manipur 260 276 291 308 325 344 363 383 404 426 448
Meghalaya 408 424 441 457 474 492 510 528 546 561 575
Mizoram 157 170 184 199 215 231 249 268 289 309 331
Nagaland 155 163 171 179 187 195 204 213 221 230 235
Tripura 329 356 421 452 484 531 567 605 645 687 731
North Eastern 3437 3755 4029 4284 4556 4855 5159 5481 5835 6176 6519
Region
All India 203115 216966 230144 244565 260118 277201 294716 313098 334811 350670 366393

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Table 2.2.2.3: All India State/UT Wise Electrical Energy Consumption in MU (2021-22 to 2031-
32)
State/ UT 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32
Chandigarh 1415 1532 1575 1616 1657 1697 1737 1780 1828 1885 1934
Delhi 28472 32263 33758 35277 36910 38563 40302 42129 44181 46095 48040
Haryana 45210 51248 54945 59223 63971 69052 74438 80183 87047 92203 97617
J&K 10018 10669 12954 14505 16183 17585 18710 19860 21020 22096 23110
Ladakh 158 178 200 225 254 286 321 361 406 456 513
Punjab 52080 55190 58000 61323 64901 68770 72833 77138 82376 85912 89520
Rajasthan 71097 81114 90258 96437 102809 109652 116806 124318 133164 139590 146012
Uttar Pradesh 100511 118447 126365 135299 144909 155239 166202 177867 191210 202792 214598
Uttarakhand 13228 13903 14648 15495 16395 17339 18330 19361 20567 21424 22273
Northern Region 332563 375354 404003 431277 460476 491306 523460 557450 597054 628255 659956
Chhattisgarh 26281 29964 31985 34383 36982 39750 42705 45822 49531 52058 54712
Daman & Diu 2423 2631 2752 2891 3036 3184 3355 3534 3745 3889 4034
Goa 3733 3886 4053 4244 4449 4664 4889 5128 5412 5637 5867

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Gujarat 106030 119759 127240 136487 146730 157432 168851 180823 195946 203702 211454
Madhya Pradesh 65659 75617 80690 86686 93168 101952 109387 117151 126284 132807 139026
Maharashtra 144417 153903 160888 168594 177214 186319 195081 204087 215376 222080 228230
Western Region 354923 393021 415215 441303 470031 502208 533651 566416 606752 630958 654429
Andhra Pradesh 60495 64523 69133 74583 80515 87016 93847 101081 109604 115785 121978
Karnataka 62575 64772 67224 70017 72975 76726 80085 83482 87467 90548 93460
Kerala 23061 24255 25534 26940 28418 29968 31596 33317 35314 37034 38683
Lakshadweep 51 52 54 56 58 60 62 65 67 69 71
Puducherry 2530 2658 2740 2832 2924 3022 3120 3224 3345 3438 3514
Tamil Nadu 92625 97905 103612 109939 116621 123683 131072 138850 147762 155466 163156
Telangana 62680 64806 68640 72966 77561 82578 87665 92946 98949 103459 107809
Southern Region 304017 318971 336938 357333 379071 403054 427448 452965 482509 505798 528672
A&N 267 276 284 292 300 308 315 322 330 338 345
Bihar 27026 31440 34658 37982 41892 45659 49703 53983 58917 63368 67699
DVC 16132 17096 18196 19498 20904 22395 23981 25646 27629 28932 30277
Jharkhand 14361 15259 16512 17842 19472 20984 22571 24224 26346 27732 29068
Odisha 31619 35745 36453 37668 39171 40907 42888 45065 47928 49504 50952
Sikkim 441 476 512 552 594 639 687 738 792 850 911
West Bengal 43061 48235 51299 54844 58723 62838 67251 71697 76960 80657 84410

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Eastern Region 132907 148527 157913 168678 181057 193731 207397 221674 238902 251380 263662
AP 470 508 550 595 644 694 746 802 863 923 978
Assam 8777 9699 10316 10994 11721 12493 13320 14206 15204 16157 17127
Manipur 732 784 839 897 961 1027 1098 1172 1253 1339 1425
Meghalaya 1654 1732 1813 1897 1984 2074 2166 2259 2355 2437 2514
Mizoram 661 726 798 875 958 1046 1142 1241 1347 1455 1573
Nagaland 655 689 725 761 799 839 878 920 961 1001 1027
Tripura 1051 1118 1305 1377 1455 1581 1665 1750 1841 1933 2018
North Eastern 13999 15256 16346 17397 18521 19754 21015 22351 23823 25244 26662
Region
All India 1138408 1251129 1330415 1415987 1509157 1610053 1712971 1820855 1949040 2041635 2133380

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Available Generation Capacity in Chhattisgarh
Introduction
Power sector is a critical infrastructure element for growth of an economy. The availability
of reliable, quality and affordable power is vital for rapid growth in agriculture, industry and
for overall economic development of a State. An efficient, resilient and financially healthy
power sector is an essential requirement for growth of a State and economic empowerment
of the common man.
The Chhattisgarh State was formed as per the Madhya Pradesh Reorganization Act 2000.
The President of India gave his consent to this Act on the 25th August 2000. The
Government of India subsequently set the first day of November 2000 as the day on which
the State of Madhya Pradesh would be bifurcated into State of Chhattisgarh and State of
Madhya Pradesh. Chhattisgarh State Electricity Board was formed in accordance with the
Section 5 of the Electricity Supply Act 1948 as per the Notification published in the gazette
of the Government of Chhattisgarh dated 15th November 2000. Chhattisgarh State
Electricity Board (CSEB) became functional w.e.f. 01.12.2000.
Chhattisgarh State Electricity Board has been reorganized into following five companies
in accordance with the provisions contained in the Section 131-134 of Electricity Act
2003 by the Govt. of Chhattisgarh vide Notification dated 19.12.2008.
1. Chhattisgarh State Power Generation Company Limited.

2. Chhattisgarh State Power Transmission Company Limited.
3. Chhattisgarh State Power Distribution Company Limited.
4. Chhattisgarh State Power Holding Company Limited
5. Chhattisgarh State Power Trading Company Limited
In pursuance to the notification No. 1686/F-21/13/2009/13/2 dtd. 08.06.2022 issued by the

Energy Department Government of Chhattisgarh and Subsequent filing did 06.07.2022 with
Registrar of Companies, as per the provisions of the Companies Act. 2013. Chhattisgarh
State Power Holding Company Limited and Chhattisgarh State Power Trading Company
Limited has been dissolved and merged into Chhattisgarh State Power Transmission
Company Limited and Chhattisgarh State Power Distribution Company Limited
respectively.

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Chhattisgarh State Electricity Board has been now reorganized into following three
companies as per Govt. of Chhattisgarh:
1. Chhattisgarh State Power Generation Company Limited.

2. Chhattisgarh State Power Transmission Company Limited.
3. Chhattisgarh State Power Distribution Company Limited.
The Chhattisgarh State Power Generation Company Limited became functional w.e.f.
01.01.2009.
The mission CSPGCL to generate adequate and reliable power through most
economical, most efficient & eco-friendly manner and to make Chhattisgarh State 'Power
Hub of India'.
Generation System
To satisfy the energy needs of the State, Chhattisgarh State Power Generation Company
Limited (CSPGCL) has a total installed capacity of 2978.7 MW from Thermal & Hydel power.
Table 2.3.2.1 Installed capacity in MW of CSPGCL as on 30.06.2022
Ownership Thermal Hydel Solar Biomass/other Total

State 2840 138.70 - - 2978.7
Central Allocation 2006.29 100 - - 2106.29
(WR+ER+NR)
Total 4846.29 238.70 - - 5084.99
Source: CSPGCL
Likely addition to Generation Capacity in Future
To meet the ever-increasing energy demand in the coming years, CSPGCL has proposed
new generation for the upcoming years. CSPGCL has exploited the hydroelectric potential
available in the state. However, to balance the excess power available during off peak
hours and to tide over the peak hour shortage, Bodhghat HPP (500 MW) scheme in
Dantewada has been proposed.
Table 2.4.1 Proposed Thermal Project Proposed Installed Capacity (in MW)
Proposed Installed
S.N. Proposed Thermal Project District
Capacity (in MW)

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1 HTPS Korba West (2x660 = 1320 MW) Korba

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Table 2.4.2 Proposed Hydropower Project Proposed Installed Capacity (in MW)
S.N. Proposed Hydropower Proposed Installed District

Project Capacity (in MW)
1 Bodhghat HPP (4X125 = 500 MW) Dantewada
2 Kotri HPP (3x50=150 MW) Bastar
3 Nugur-1 HPP (5x34=170 MW) Dantewada
4 Nugur-II HPP (5x42=210 MW) Dantewada
5 Rehar-1 HPP (3x57=171 MW) Surguja
6 Rehar-II HPP (3x49=147 MW) Surguja
The estimated peak demand (MW) and Energy requirement (BU) in the years 2026-27
and 2031-32 for all the five regions and All India.
Table 2.4. 3 All India Peak Demand & Energy Requirement
To meet the projected peak demand, the integrated renewable sources are more preferable
(Such as Pump storage project with solar/ wind project). Hourly chart will best enstrate the
requirement meet.

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Figure 2.4. 1 Mapping of daily hours to LT blocks (50 blocks/year theme)
As per 20th National Electricity Plan, regional-wise additional capacity required during -
2022- 2027 and 2027-2032, The total additional capacity is of 21218 MW for the western
region out of this 960 MW is from Pump storage project.
Table 2.4. 4 Region wise details of Additional Capacity addition required during 2022-27
To ensure the peak demand of the projected load in a day, it is required to have adequate
supply to meet the hourly peak demand and to meet this requirement renewable will play
a critical role as illustrated by data.

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Figure 2.4. 2 Technology wise Likely Generation Dispatch on Peak Demand

Day (2026-27)
By the above figure, it has been clear in day time, the requirement of peak load will be
fulfilled by solar/wind and in non-solar period, the peak demand requirement will be fulfilled
by PSP. It has been observed that on this day when the peak demand occurs, the
electricity peak and energy demand is likely to be fully met with the generation capacity mix
obtained from the long-term studies. Further, it is seen that online coal capacity is running
at 55% minimum technical load (MTL) during the hours when full solar generation is
available. The Storage is getting charged during the period when excess solar generation is
available and dispatched during non-solar hours.
Demand and Supply Scenario in All India/ Western Region/ Chhattisgarh
The energy requirement of Chhattisgarh during FY 2021-22 was 428994 MU and in the FY
2031-32 it would be 763198 MU as per projection made in the 20th EPS of India due to
rapid increase in power demand for all types of present and future customers (Domestic,
Commercial, Irrigation, Industries, Railway traction and others).
Pumped Storage Plants
General
While many forms of energy storage systems have been installed globally, Pumped

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Storage Plants (PSP) are playing an increasingly important role in providing peaking
power and

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maintaining system stability in the power system of many countries. Pumped storage
technology is the long term technically proven, cost effective, highly efficient and
operationally flexible way of energy storage on a large scale to store intermittent and
variant energy generated by solar and wind.
PSPs improve overall economy of power system operation and reduce operational
problems of thermal stations during low load period. The other advantages of pumped
storage technology are availability of spinning reserve at almost no cost to the system and
regulating frequency to meet sudden load changes in the network. Also, PSPs provide
environmentally friendly large storage capacity compared to other storage options. It also
has the ability to provide ancillary benefits such as flexible capacity, voltage support and
Black start facility etc. The life of pumped storage projects is same as hydro projects i.e., 40
years. The Efficiency of PSP is in the range of 70 % to 80 %, due to the losses in the
process of pumping water up into the reservoirs. Pumped storage technology has
advanced significantly since its original introduction and now includes adjustable speed
pumped turbines which can quickly shift from motor, to generator, to synchronous
condenser modes, for easier and more flexible operation of the Grid.
PSPs have the ability to provide ancillary benefits such as flexible capacity, voltage support
and Black-start facility etc. Pumped storage technology has advanced significantly since its
original introduction and now includes adjustable speed pumped turbines which can pump
water at different speed with different load.
A relatively new approach for developing pumped storage projects is to locate the
reservoirs in areas that are physically separated from the existing river systems. These
projects are termed as “closed-loop” pumped storage because they have minimal to no
impact on the existing river systems. After the initial filling of the reservoirs, the only
additional water requirement is the make-up water required to offset evaporation or
seepage losses. By avoiding the existing complex aquatic systems entirely, these types of
projects can greatly reduce the most significant aquatic impacts associated with project
development.
Status of Development of Pumped Storage Plants in India
The power system operation stability requires the system to minimize fluctuations between
demand and supply. This encompasses, for example, short term reserves (generation,
storage, demand response) to cover potential incidents which decrease power supply to
the system, or to respond to short-term variations in demand and generation.

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As on 31th March 2022, Hydro Electric Schemes (above 25 MW capacity) have a total
installed capacity of 46,722.52 MW including Pumped storage schemes (PSS) capacity of
4,745.6 MW.
Table 2.4. 5 Summary of the status of Hydro Electric Potential (as on 31.03.2022)
In India, the state of West Bengal has been a frontrunner in the promotion of pure pumped
storage technology. Purulia project in West Bengal with a capacity of 900 MW, set up in
2007, is running successfully. As on 31.03.2022 there are 8 number of PSP projects in the
country totaling to 4746 MW, out of which projects with a capacity of 3306 MW are working
in the pumped mode currently. Balance capacity is currently not operating in pumped mode
due to delay in construction of the tail reservoir or due to vibration related issues in the
system.
Central Electricity Authority (CEA) has identified a PSP potential of 96,529.6 MW in

different parts of the country. Region-wise, the western region has the highest PSP
potential at 37,845 MW due to the topographical features.
The following PSP projects are under construction (as on 31.03.2022):
 Tehri Stage II - 1,000 MW located in Uttarakhand implemented by THDC limited.
 Koyna Left Bank - 80 MW in Maharashtra being implemented by the Water

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Resources Department of Maharashtra; and

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 Kundah Pumped Storage Project Stages I, II, III and IV (500 MW) in Tamil Nadu
being implemented by TANGEDCO.
Economics of Pumped Storage Projects
Out of 96,529.6 MW of pumped storage potential identified in India by CEA at 63 sites and
at present 8 nos. pumped storage schemes with aggregate installed capacity of 4745.6 MW
are in operation. A PSP operation of a typical day is shown in Fig. 2.5.3.1 & 2.5.3.2.
Table 2.5.3. 1 Plot of Kadamparai Generation/Pumping with Frequency for 17th

May’2016
Source: CEA
Table 2.5.3. 2 Plot of Purulia PSP Generation/Pumping with Frequency for 3rd
October’2015
Source: CEA

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In view of infusion of high RES, Pump Storage Development has to be treated as a

separate category. Separate Policy instrument is required to incentivize PSPs. The pumped
storage capacity was assessed by CEA in 1987, since then there have been many changes
in environment laws & technology which calls for re-assessment of the potential.
In India, with increased penetration of RES in the grid, present practice of real time
unbalance management may not be sufficient for handling large scale uncertainty in RES
and limit the integration of renewable energy generation. The transmission corridors for
evacuation of renewable power is being firmed up or the plan of having 175 GW of RE
power in next 5 years, it is imperative to develop more PSPs and the benefits being given
to RE projects may also be extended to the PSPs.
The development of pumped storage particularly in the areas with concentrated wind and
solar generation would significantly improve the grid reliability and it would act as the best
partner for the Renewable Energy integration.
While benefits of having pumped storage hydro power are known but current market
structures and regulatory frameworks do not present an effective means of achieving this
goal. There is need for regulatory mechanism/market incentives for effective integration of
new generation, energy storage and transmission or that makes the PSP a commercially
viable proposition. Regulatory Commissions may incentivize tariff for PSPs and financial
institutions should consider providing attractive terms for financing of PSPs.
In Order to promote commissioning and optimum utilization of Storage projects, Central

Government in compliance with the para 6.4(6) of tariff policy has issued Inter State
Transmission system (ISTS) waiver charges for PSP and BESS projects. As per MoP order
no. 23/12/2016-R&R (Annexure – III) issued on 23.11.2021, Inter State transmission system
charges (excluding losses) were waived for transmission of electricity supplied by Hydro
PSP and BESS projects commissioned till 30.06.2025, if the following conditions are met:
 At least 51% of the annual electricity generation requirement of pumping of water of

the PSP plant is met by use of solar and wind-based generation.
 At least 51% of the annual electricity generation requirement of charging of the

BESS system is met by use of solar and wind-based generation.

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Importance of Pumped Storage Hydro Projects in Present Scenario
The current development profile and trends in generation capacity addition in India have
resulted in the following aspects:
 Black start capability - the ability to start generation without any external source of
power. This service allows system operators to provide auxiliary power to more
complex generation sources that could take long time to restart. Systems with
hydroelectric generation are able to restore service more rapidly than those
dependent solely on thermal generation.
 Regulation and frequency response - the ability to meet small fluctuations in

power system. When a system is unable to respond properly to load changes its
frequency changes, resulting not just in a loss of power, but potential damage to
electrical equipment connected to the system. Hydropower's fast response
characteristic makes it especially valuable in load-frequency control.
 Spinning reserve - the ability to run at zero load while synchronized to the electric
system. When loads increase, additional power can be loaded rapidly into the
system to meet demand. Hydropower can provide this service while not consuming
additional fuel, thereby assuring minimal emissions.
 Non-spinning reserve - the ability to enter generation into an electrical system

from a source not on line. While other energy sources can also provide non-
spinning reserve, hydropower's quick start capability is unparalleled, taking just a
few minutes, compared with other sources.
 Voltage support - the ability to control reactive power to maintain stable voltage
profiles in transmission network, thereby assuring that power flows from generation
to load.
 Sustainable low carbon development: While India is considering a low carbon

strategy and actively considering focusing on Energy Efficient Renovation &
Modernization to utilize existing assets, the low carbon strategy can be fostered
further with a higher thrust on green capacity additions via hydropower
development. These factors necessitate renewed emphasis on ‘responsible
hydropower development’ to promote economic growth. Hydro’s critical role in
sustainable development and energy security for the country is based on the
elements of sustainability, availability and affordability.

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Issues and Way Forward for Pumped Storage Hydro Projects
 Since Pumped storage schemes use energy for pumping operation, commercial
justification of peak energy produced from these plants pose problem. It is therefore
desirable that separate regulation for peak energy may be envisaged.
 Regulatory treatment to Pump Storage schemes and market design is very critical for
commercial viability of these plants as pricing rules should fully capture benefits of PSP
and reward such assets for the full range of services provided by them to the Power
system.
 Water and Water Power is state subject. State Governments should be encouraged to
allocate the identified pumped storage schemes to prospective developers for
implementation.
 Some of the identified schemes, particularly, in Western Region are located in areas
which have been declared as Wild Life Sanctuaries. The State/Central Governments
are required to take necessary action to de-notify the areas required for development of
pumped storage schemes involving Wild Life Sanctuaries.
 In case, it is possible to locate a pumped storage scheme where upper/lower reservoir

is already existing/under construction, it would be more cost effective and easily
implementable.
(Ref: - CERC)
Regulatory Issues and Challenges
 Grid Stabilization and security - Large Capacity addition Renewable Generation and
dealing with its variability
 Technical Mechanism - Backing down of renewable and need for flexible operation of
conventional generation
 Difficult sites and long gestation period
 High Capital cost of storage based Pumped Storage Plants and resultant high tariffs
 Poor Financial health of State Discoms
 Lack of Market Mechanism
 Lack of Ancillary Services
 Competition from other conventional sources
(Ref: - CERC)

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Variability & Uncertainty of RES
 Renewable Energy Sources (RES) such as wind and solar power are variable and
uncertain in nature.
 They are not able to generate electricity on demand and their power output fluctuate
with weather conditions (such as wind speed, wind direction, temperature, rain, cloud
cover and humidity)
Necessity and Justification of the Project
It is observed that expansion of estimated power requirement during the period of 13 th five
years plan (1st April 2017 to 31stMarch 2022) and estimated power requirement in 2030,
CSPGCL can take part in this integration of power generation of the country.
As per the 20th Electric Power Survey of India (CEA), Electrical Energy Requirement of
Western Zone for the period 2021-22 is estimated to be 428994 MU and for the period
2031-32 is estimated to be 763198 MU, Peak Electricity Demand at power station Bus bars
65437 MW for the period 2021-22 and 114766 MW and for the period 2031-32.
Chhattisgarh has an installed capacity of 13798.07 MW consisting of 12221.85 MW

thermal, 48 MW nuclear, 233 MW hydro and 1295.22 MW from renewable energy sources
as on 31.12.2022.
The hydro installation of 233 MW in overall installation of 13798.07 MW in Chhattisgarh is

only 1.68% which is much below the optimum hydro thermal mix of 40:60. Thus there is an
urgent need to take up more storage based hydro projects with an aim to achieve optimum
hydro thermal mix in the state. Moreover, CSPGCL’S KTPS-II (4X50 = 200 MW) & KTPS-III
(2x120 =240 MW) has been retired due to new environmental norms.
Increase of generation of CSPGCL is needed to cope up with the forecast of demand as

stated above. Installation of Pumped Storage Project is suitable according to the present
trend of world power scenario to meet up peak demand as well as to avoid use of fossil fuel
and to avail the opportunity of God gifted geological condition.
Proposal for installation of 1400 MW Dangari Pumped Storage Scheme is very much
essential to fulfil peak power demand and justified in consideration with the requirement of
excess 49329 MW peak electricity demand at Western Zone in 2031-32 in comparison to
2021-22. Dangari Pumped Storage Project is expected to generate 1400 MW of power for
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hours 40 minutes in a day considering 355 days (considered 10 days for maintenance
work) in a year in one cycle operation. Dangari PSP can generate 2895.67 MU of energy in
a year from the proposed 1400 MW PSP. Pumping time is required about 6 hours 34.7 min
in a day in one cycle operation.
There is a big scope to keep up this ratio with the installation of a Pump Storage Project as
well as to add generation according to need of the grid which will ensure the active
participation in expansion of power generation of the country in coming years.
Pump Storage project helps the grid (frequency balance) by adding power by generation in
peak demand and draw power during off peak for pumping. It helps the thermal power
stations to generate more power in off peak by drawl of power for pumping of pumped
storage project which helps to relieve the back down of thermal power stations, reduce costly
oil support, minimize the breakdown, and ultimately improve the PLF of Thermal Power
Stations.
From economic point of view the pumped storage project is viable as the rate of energy is
different at different time of the day though it draws more power during pumping rather than
generation and efficiency is more than 75%. Energy charges also varies depending on
frequency, during off peak demand when frequency has the tendency to be higher, rate of
energy becomes lower which reduces the cost of pumping power.
If a big Solar project is connected with grid, frequency of the grid may change due to its
sudden variation of generation due to its natural variation like, cloud, rain, storm etc. It is a
hard task for Thermal power station to cope up the grid balance due to sudden change in
solar generation, but costlier variable speed machine instead of fixed speed machine in the
pumped storage project has the scope to cope up this variation within millisecond.

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Chapter - 2 Justification of The Project From Power Angle

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Dangari Pumped Hydro Electric Storage

Project, (4 x 350 MW)

JUSTIFICATION OF THE PROJECT FROM POWER ANGLE

The Installed Capacity of the country as on 31.1.2024 was 429961.4 MW comprising of

Chapter – 2: Justification of the Project from Power Page 1 of 28

Figure 2.2. 1 Installed Capacity and Electricity Generation in India

Chapter – 2: Justification of the Project from Power Page 2 of 28

Figure 2.2. 3 All India Re- Installed Capacity as on 31.03.2022

Table 2.2. 1 The total installed capacity of India is 412212.14 MW as on 28.02.2023

Chapter – 2: Justification of the Project from Power Page 3 of 28

In western region, the total installed capacity is of 134278.82 MW consisting of 86779.58

As on 31.03.2022, a capacity addition of 54,779.15 MW from renewable energy sources

Chapter – 2: Justification of the Project from Power Page 4 of 28

Chapter – 2: Justification of the Project from Power Page 5 of 28

Figure 2.2. 4 Capacity Addition from RE Sources during 2017-22

Source: Central Electricity Authority (CEA)

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Chapter – 2: Justification of the Project from Power Page 7 of 28

Chapter – 2: Justification of the Project from Power Page 8 of 28

Pump Storage contribution in stabilizing the Transmission Grid

Chapter – 2: Justification of the Project from Power Page 9 of 28

Generation Addition up to 2021-22

Chapter – 2: Justification of the Project from Power Page 10 of

Chapter – 2: Justification of the Project from Power Page 9 of 28

Source: 20th EPS, CEA

Chapter – 2: Justification of the Project from Power Page 10 of 28

Chapter – 2: Justification of the Project from Power Page 11 of 28

Source: 20th EPS, CEA

Chapter – 2: Justification of the Project from Power Page 12 of 28

Chapter – 2: Justification of the Project from Power Page 13 of 28

Chapter – 2: Justification of the Project from Power Page 14 of 28

Source: 20th EPS, CEA

Chapter – 2: Justification of the Project from Power Page 15 of 28

Available Generation Capacity in Chhattisgarh

1. Chhattisgarh State Power Generation Company Limited.

In pursuance to the notification No. 1686/F-21/13/2009/13/2 dtd. 08.06.2022 issued by the

Chapter – 2: Justification of the Project from Power Page 16 of 28

1. Chhattisgarh State Power Generation Company Limited.

Table 2.3.2.1 Installed capacity in MW of CSPGCL as on 30.06.2022

Ownership Thermal Hydel Solar Biomass/other Total

Likely addition to Generation Capacity in Future

Chapter – 2: Justification of the Project from Power Page 17 of 28

1 HTPS Korba West (2x660 = 1320 MW) Korba

Chapter – 2: Justification of the Project from Power Page 18 of 28

S.N. Proposed Hydropower Proposed Installed District

Table 2.4. 3 All India Peak Demand & Energy Requirement

Chapter – 2: Justification of the Project from Power Page 19 of 28

Figure 2.4. 1 Mapping of daily hours to LT blocks (50 blocks/year theme)

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Figure 2.4. 2 Technology wise Likely Generation Dispatch on Peak Demand

Demand and Supply Scenario in All India/ Western Region/ Chhattisgarh

Pumped Storage Plants

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Chapter – 2: Justification of the Project from Power Page 22 of 28

Status of Development of Pumped Storage Plants in India

Chapter – 2: Justification of the Project from Power Page 23 of 28

Central Electricity Authority (CEA) has identified a PSP potential of 96,529.6 MW in

The following PSP projects are under construction (as on 31.03.2022):

 Tehri Stage II - 1,000 MW located in Uttarakhand implemented by THDC limited.

 Koyna Left Bank - 80 MW in Maharashtra being implemented by the Water

Chapter – 2: Justification of the Project from Power Page 24 of 28

Chapter – 2: Justification of the Project from Power Page 25 of 28

Economics of Pumped Storage Projects