The Assam Electricity Regulatory Commission (AERC) has approved the Assam Power Distribution Company’s (APDCL) proposal to procure 1,000 MW of pumped hydro storage capacity for 40 years, adopting a tariff of ₹10.29 million (~$116,000)/MW/year, as determined through competitive bidding.

The Commission permitted the signing of the pumped hydro storage power procurement agreement with the developers of pumped hydro storage projects, which offer nine hours of discharge capability with a maximum six-hour continuous discharge period.

Background

The petitioner, APDCL, initiated a competitive bidding process for procuring 1,000 MW of pumped hydro storage capacity. In the e-reverse auction, three bidders — Adani Saur Urja (KA), Greenko Energies, and HES Infra — qualified.

Greenko quoted a Total Storage Cost (TSC) of ₹13.46 million (~$152,000)/MW/annum for 500 MW, Adani quoted ₹13.46 million (~$152,000) for 500 MW, and HES quoted ₹13.48 million (~$152,000) for 200 MW.

Adani subsequently matched Greenko’s lowest offer as permitted under the bidding rules. Using the bucket-filling method to reach 1,000 MW, Greenko and Adani were selected, while HES received no allocation.

Following APDCL’s request for further reduction, Greenko and Adani agreed to lower the TSC to ₹13.33 million (~$150,000)/MW/annum, reducing the annual fixed charges to ₹10.29 million (~$116,000)/MW/ annum.

APDCL informed the Commission that Assam’s power demand is currently met through long-term contracts with NTPC, NHPC, NEEPCO, APGCL, independent power producers, and renewable generators, but the utility often relies on short-term open access and power exchanges to meet evening peak shortages.

APDCL stated that market-clearing prices have risen as high as ₹10 (~$0.11)/kWh during peak hours, with risks of low clearance and financial exposure. The utility emphasized that pumped storage would allow charging during off-peak hours and discharging during peak periods, improving energy security and reducing price exposure

It also argued that pumped storage supports Renewable Purchase Obligation compliance by absorbing surplus hydro and solar power. APDCL presented a market price analysis for the period from October 2024 to September 2025, showing potential savings of approximately ₹110.37 million (~$1.244 million)/MW/annum if the pumped storage projects operate optimally, after accounting for a cycle loss of 23% and input costs.

Commission’s Analysis

AERC examined the bid process, tariff discovery, technical parameters, and APDCL’s justification based on market price volatility, peak power requirements, and RPO obligations.

The Commission noted that the procurement would strengthen Assam’s energy security and reduce dependence on short-term markets. It adopted the final annual fixed charges of ₹10.29 million (~$116,000)/MW/ annum.

In October this year, AERC amended the AERC (Terms & Conditions for Open Access) Regulations, 2024, permitting green energy open access (GEOA) only for consumers applying through a lead GEOA consumer located in the same electricity division of the distribution licensee.

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