Tenders invited to prepare DPR for Upper Bhavani PSP in The Nilgiris

Notification issued after NTPC, Tangedco sign MoU for three projects in State

CHENNAI: NTPC Tamilnadu Energy Company Limited (NTECL), a joint venture of NTPC Ltd and Tangedco has invited tenders to appoint a consultant for the 4X250 MW Upper Bhavani Pumped Storage Project (PSP) in the Nilgiris district.

The tender was notified after the NTPC signed a Memorandum of Understanding with Tangedco to construct three PSPs in the State. The projects include the 1000 MW Upper Bhavani PSP, Sandynalla (4x300 MW), and Sigur (4x200 MW) PSP.

NTECL which runs the 1500 MW Vallur thermal power plant seeks to appoint a consultant for the preparation of bankable DPR of International standards for the Upper Bhavani PSP for maximum annual power generation with competitive tariff considering economical water usage and overall cost, commensurate for taking up the construction work of the project.

Sources said that NTECL might approach international funding agencies like the World

Bank, JICA, ADB, JBIC, and others for funding. Hence, it wanted the DPR to include all studies analysis, and reports, which such agencies usually require.

Sources said that it would take about two years for the DPR, while construction would take five to six years.

Pumped hydro storage is described as a gravity-based energy storage technology. It consists of two water reservoirs at different elevations. When there is excess power on the grid and demand for electricity is low, the power is used to pump water from the lower to the upper reservoir using reversible turbines. When demand is high, the water is released into the lower reservoir, driving the turbines in the other direction to generate electricity.

Tangedco which has a 400 MW Kadamparai PSP is building a 500 MW Kundah PSP at Nilgiris. It is expected to be commissioned by 2025. Tangedco also has an ambitious plan to set up 15 PSP projects with a combined generation capacity of 14,500 MW including three projects through the NTPC. It plans to take up Sillahalla Stage-I and Stage-II (1000 MW each), Kodayar (1500 MW), Manalar (1200 MW), Aliyar (700 MW), and other eight projects through the PPP mode.

It has already applied for environmental clearance for the 1000 MW Sillahalla Stage-I, 1500 MW Kodayar, and 1200 MW Manalar PSP projects. The Ministry of Environment and Forest last year has recommended the issuance of terms of reference (ToR) for two private firms to establish closed loop-based PSHP in Dharmapuri and Tirupattur districts. The closed-loop PSHP is located away from rivers and does not involve a connection to a natural water source to create a lower reservoir.

A senior Tangedco official said that the pumped storage projects offer cheaper and more reliable energy storage than battery-based storage. “The surplus renewable energy can be used to pump water from the lower reservoir to the upper reservoir. Whenever the need arises, the water from the upper reservoir, which acts as energy storage, can be used to generate power,” the official added.