EDF India has launched a new white paper titled Strengthening India’s Pumped Storage Plants Framework: EDF’s Recommendations for Attracting International Investment. The report outlines policy recommendations to enhance pumped storage plant (PSP) development and attract global investors.
India’s power capacity reached 46 GW as of January 31, 2025, with solar and wind contributing 32% of the total. By 2032, these renewable sources are expected to expand to 487 GW, forming 54% of a projected 900 GW power system. To maintain grid stability and effectively use renewable energy, India requires 27 GW/175 GWh of PSP capacity by 2031–32.
The Indian government has introduced several measures to support PSP development, including tariff-based competitive bidding (TBCB) guidelines, regulatory site approvals, and financial incentives. EDF India’s white paper suggests further refinements to improve procurement processes, payment security, and regulatory efficiency.
Key recommendations include:
- Project allotment and procurement: Introducing a two-step procurement process where technical feasibility is assessed before price bidding to improve project viability.
- Payment security measures: Establishing a centralized PSP procurement agency, similar to Solar Energy Corporation of India (SECI), to streamline contracts and ensure timely payments. State-backed escrow accounts linked to distribution company (DISCOM) revenues could also mitigate payment risks.
- Regulatory and supply chain improvements: Simplifying approval processes through single-window clearance and offering temporary waivers on import duties for critical PSP components until domestic production meets demand. Aligning PSP procurement with global environmental, health, and safety standards could also enhance investor confidence.
EDF India believes that refining these policies will strengthen PSP development, balancing investor confidence with India’s long-term energy security needs.
