Tamil Nadu’s Tangedco to Build 2,000 MW Pumped Storage Hydropower Plants via PPP Model

Tangedco to construct 2,000 MW pumped-storage hydro power stations in Tamil Nadu's Coimbatore, Theni, and Kanniyakumari districts under PPP model.

Chennai, Tamil Nadu – In a historic move to boost renewable energy capacity, TANGEDCO (Tamil Nadu Generation and Distribution Corporation) will, for the first time, adopt a Public-Private Partnership (PPP) model to establish pumped storage hydroelectric power stations in Coimbatore, Theni, and Kanniyakumari districts.

The combined power generation capacity of the three plants will be 2,000 MW. This move comes as part of the state’s commitment to increase its share of green energy and meet the growing Renewable Purchase Obligation (RPO) targets.

Phase 1 Projects and Locations:

  • Aliyar, Coimbatore – 1,000 MW
  • Manalar, Theni – 500 MW
  • Kodayar, Kanniyakumari – 500 MW

The feasibility report, prepared by a private consultant and submitted to the Union Ministry of Environment, Forest and Climate Change, has already received a green signal. Work will commence after formal state government approval.

Minister’s Vision and Green Push

Electricity Minister V. Senthil Balaji, who announced the plan in the Tamil Nadu Assembly, stated that 11 sites across the state have been identified for 7,500 MW of potential pumped storage. The focus on clean and sustainable energy aligns with national energy policies and Tamil Nadu’s leadership in renewable power generation.

What is Pumped Storage Hydropower?

A pumped-storage hydroelectric plant operates between two reservoirs at different elevations. During peak demand:

  • Water from the upper dam is released to generate electricity.
  • This water is collected in the lower reservoir and pumped back during off-peak hours using surplus power.
  • The system’s reversible turbines act as both pumps and generators, enabling energy storage and grid stability.

The Kundah project in the Nilgiris remains Tamil Nadu’s only existing facility of this type, making this upcoming expansion significant.

Understanding Renewable Purchase Obligation (RPO)

Under the National Tariff Policy 2006, power utilities must procure a minimum percentage of electricity from renewable sources. Tamil Nadu’s current RPO target is 21%, which continues to rise. This has accelerated Tangedco’s focus on solar, wind, and hydro storage projects.

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