Adani Green's ₹15,000 Crore BESS Investment Questions India's PSP Strategy
A power policy analyst has raised concerns over India's pumped storage projects (PSPs) following Adani Green's commitment to invest ₹15,000 crore in battery storage systems. The letter emphasizes the significant cost advantages of battery storage compared to PSPs, urging policymakers to reconsider the ecological impacts of proposed projects.
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Adani Green Energy plans to invest ₹15,000 crore to add 10 gigawatts of battery energy storage systems (BESS) by FY27. In light of this, analyst Shankar Sharma has criticized the Indian government's approach to pumped storage projects (PSPs), highlighting a cost disparity where BESS capital costs are around ₹1.5 crore per MW, versus over ₹5 crore per MW for the 2,000 MW Sharavati PSP.
He referenced a study showing levelized electricity costs from BESS at ₹3.8 to ₹4.1 per kWh, significantly lower than the ₹9.5 to ₹14.9 per kWh for comparable PSPs. Sharma warns that failing to conduct proper due diligence on PSPs risks eroding public trust in government policies. Projections indicate that BESS capacity in India could rise from 43 GWh planned by 2028-2030 to 1,840 GWh by 2047, supporting India's renewable energy targets.
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