Tata Power, which recently signed an agreement with the Maharashtra government for development of two pumped hydro storage projects with combined capacity of 2,800 MW in the state, is targeting to start work on both the plants by mid of 2024. In August this year, a Memorandum of Understanding (MoU) was signed for the development of a 1,800 MW of pumped hydro storage plant (PSP) at Shirawata in Pune district and a 1,000 MW PSP at Bhivpuri in Raigad district. The proposed capital investment for the projects is Rs 13,000 crore. The company has planned a capex of around Rs 60,000 crore till FY2027. Pumped hydro project is a reliable and efficient way to store energy. Under this, during times of excess energy, water will be pumped from lower reservoir to higher reservoir, and during peak demand, the stored water will power turbines, thereby generating electricity. “We are targeting that by mid of next year (2024) we will start work on both the (pumped hydro) plants. We expect the Bhivpuri PSP to be ready in 36 to 40 months from there. So, by the end of 2027, we will be able to offer power from there (Bhivpuri PSP),” Tata Power’s CEO and Managing Director Praveer Sinha told reporters. “The Shirawata plant will take a little longer, maybe 48 months, but in 2028 we will do that. So, from 2027-28 onwards, we will be able to offer blended 24x7 renewable power to consumers,” he said. In the pumped hydro storage project, the same motor can be used bidirectional – in one direction to generate electricity and in the other to pump up water from lower reservoir to upper reservoir. It is a closed loop so there is no wastage of water, and whatever water comes, it flows into lower reservoir, which then is pumped up to upper reservoir during off peak hours using solar energy. Tata Power already has a hydro power plant at Bhivpuri, which completed 100 years last year. The power station consists of a dam at Thokarwadi with reservoir storage capacity of 352 million cubic meters (MCM) of water. For Bhivpuri PSP, the upper reservoir will be Thokarwadi. Tata Power will build a lower reservoir with a 5 MCM water capacity. For Shirawata PSP, the company has to construct an upper reservoir of 15 MCM, while the lower reservoir is the existing Shirawata Dam, having a 197 MCM capacity. Sinha said pumped hydro storage plants can provide cheaper electricity compared to Rs 10 to Rs 11 per unit provided under the battery storage system. “The weighted average cost of pumped hydro (plant) will be much lower compared to the battery storage. The blended cost that you would give to the consumer (from a pumped hydro plant), hypothetically can be lowered by Re one or a little more than Re one,” Sinha said. Sinha further said that Tata Power will deploy 45 per cent of its capital to the renewable sector between FY2024 and FY2027. The estimated capex will be around Rs 60,000 crore till FY27, he said. The company will be able to double our revenue, EBITDA (earnings before interest, taxes, depreciation, and amortization) and PAT (profit after tax) going forward in the next four years. “That’s our target and we feel that with the whole pipeline of projects we have, we will be able to achieve it much faster,” Sinha said. During H1FY2024, the company reported a PAT Rs 2,158 crore, revenue of Rs 30,446 crore and EBITDA of Rs 6,092 crore. Tata Power EZ Charge, the charging point operator (CPO), is targeting more than 1O,000 public and over 2lakh home chargers by FY28, he said.
