Narmada Hydroelectric Development Corporation (NHDC), a joint venture of NHPC and the Government of Madhya Pradesh, is set to construct a 525 MW pumped storage project near Indira Sagar Dam, Khandwa, to help manage the state’s peak energy demand.

The project will be developed using the existing Indira Sagar and Omkareshwar reservoirs and generate 1,226.93 million units of energy during peak hours.

The estimated cost of the project is ₹42 billion (~$509.28 million).

The state has identified the potential for 11.2 GW of pumped storage projects, and NHDC was assigned the project by the state’s Department of New & Renewable Energy.

NHDC currently operates two power stations – Indira Sagar Power Station (1 GW) and Omkareshwar Power Station (520 MW) in the Khandwa district and supplies 100% of their power to the state.

NHDC has also accelerated efforts to develop solar projects in the state to meet the rising energy demand.  It is constructing an 8 MW solar project in Sanchi city of the state while an 88 MW floating solar project is being built on Omkareshwar reservoir.

Last month, the Madhya Pradesh state government released guidelines to promote the development of pumped hydro storage projects. The guidelines clarify the methods for allotment of project sites, tax waivers, and project completion timelines.

In January this year, the Greenko Group announced an investment of ₹100 billion (~$1.2 billion) in setting up a pumped storage project in the Neemuch district of Madhya Pradesh. The daily storage capacity of the pumped hydro storage would be 11 GWh, the company said.

The in-house renewable power stored in the project during low-demand hours will be dispatched to help meet Madhya Pradesh’s peak electricity demand, yielding significantly lower power costs.

Also, in May this year, Rewa Ultra Mega Solar and Solar Energy Corporation of India issued a request for proposal to select a developer for 13.8 GW of pumped hydro storage projects across sites in the state.

Recently, the Union government introduced several initiatives to expedite the commissioning of pumped storage projects in the country.