NEW DELHI : The well timed implementation of market reforms is essential to enhance the monetary viability of pumped storage hydro challenge (PSP) within the nation, in accordance a report by rankings company Icra Ltd.
In line with the report, the levelised tariff for pumped storage hydro initiatives within the base case (capital price of ₹6.5 crore per MW and 16.5% return on fairness) is estimated at ₹4.98 per unit whereas the landed tariff together with price of vitality required for pumping is estimated at Rs. 8.92 per unit.
“Well timed implementation of market reform proposals as highlighted within the draft tips additionally stays essential to enhance the monetary viability of PSPs,” it mentioned.
ICRA mentioned that the pumped storage hydro initiatives have an extended financial lifetime of 40 years, are primarily based on very mature and indigenous know-how and are environment friendly. They’re additionally price aggressive.
The levelised price (capital price of 250 USD/kwh) utilizing BESS is estimated at Rs. 11.1 per unit which is twice the bottom case price estimate (conversion) of Rs. 4.98 per unit for pumped storage hydro initiatives.
‘’Nonetheless, the well timed implementation of market reform measures as highlighted within the tips stays essential to enhance the monetary viability of PSPs,‘’ acknowledged Girishkumar Kadam, Senior Vice President & Co-Group Head – Company Scores, ICRA.
It added that with enhance in put in renewable vitality capability, the share of renewable vitality (RE) energy in electrical energy era is predicted to extend from 11.5% in FY2022 to twenty-eight% by FY2030. Rising sources of intermittent energy (wind and photo voltaic) would necessitate increased storage capability for sustaining grid stability.
The rules comprise numerous measures resembling for the monetization of ancillary companies, exemption from free energy obligation / native space improvement fund, state GST reimbursement, and rationalization of surroundings clearance.
The pumped storage hydro initiatives (PSPs) supply vital advantages within the type of frequency regulation, storage/ time shifting, ramping functionality, black begin functionality, peak shaving, reactive energy and voltage management, and spinning reserves. They’re, subsequently, greatest fitted to supporting grid operations.
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Up to date: 25 Apr 2023, 08:35 PM IST
Supply: Live Mint