Maharashtra State Electricity Distribution Co. Limited (MSEDCL) has granted Torrent Power Limited a Letter of Intent (LOI) to acquire 1,500 MW/ 12,000 MWh of energy storage capacity for a pumped hydro storage project. For a 40-year term, MSEDCL will purchase 1,500 MW of energy storage capacity from a pumped hydro storage project. 

Through its planned pumped hydro storage facility in Maharashtra's Raigad District, the business hopes to provide storage capacity.

"Detailed Letter of Award will be issued by MSEDCL upon obtaining necessary approval from Maharashtra Electricity Regulatory Commission (MERC) in terms of the tender document on the quoted tariff," the business stated.

The firm will provide MSEDCL with a contractual capacity of 1,500 MW, capable of discharge for 8 hours (with a maximum continuous 5 hours) each day, under the terms of the Pumped Hydro Energy Storage Facility Agreement (PHESFA). The charging input energy will come from MSEDCL. 

Energy storage systems will be more and more necessary to supply steady, dependable, and dispatchable renewable energy as solar and wind power become more and more prevalent in the electricity generating process. Pumped Storage Project (PSP) locations have been found by Torrent Power in many states.

The company has previously declared its intention to invest between Rs 25,000 and Rs 35,000 crores to add 5 to 8 GW of PSP capacity. The firm is also working on other green energy initiatives, such Green Hydrogen and Green Ammonia Production, as part of its development plan.