India-based renewable energy developer Greenko has signed two deals for its pumped hydropower storage project. According to media reports, one of India’s largest industrial conglomerates, Adani Group, recently signed an agreement with Greenko for using the latter’s pumped hydropower storage capacity. Adani will utilize around 6 gigawatt-hours of storage capacity for its industrial complex.
In another deal, an Indian joint venture company of ArcelorMittal and Nippon Steel will procure 250 megawatts of round-the-clock renewable energy from Greenko. ArcelorMittal Nippon Steel India (or AM/NS India) will invest in and own a part of the 975 megawatt renewable energy plus storage project in the state of Andhra Pradesh. Last year, ArcelorMittal had announced aggressive plans to boost renewable energy procurement in India.
AM/NS India will buy this power for a period of 25 years. It will be able to meet 20% of its electricity requirement from this power supply and also enable it to offset 1.5 million tonnes of carbon dioxide emissions every year. The project is expected to be completed in 2024.
The project will be eligible for exemption from transmission charges levied on power supplied across states. India’s ministry of power offers this incentive for a period of 25 years to all renewable energy projects commissioned by 30 June 2025.
“Without long duration storage, energy transition at large scale will take much longer period. Decarbonisation is not just critical from an climate change perspective but also for India’s energy security. Price of imported LNG gas used by industrial users has touched $18-$20/mmBtu range and as importers we have no control over prices,” said Anil Chalamalasetty, Managing Director Greenko.
Heavy industries in India are increasingly looking to enhance share of renewable energy in their power procurement mix and reduce greenhouse gas emissions. Apart from these proactive measures, Indian policy also requires these companies to enhance their renewable energy procurement. The government recently announced that heavy industries like steel, petroleum, and fertilizers would be required to use green hydrogen.
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