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					</table>The Central Electricity Regulatory Commission (<a href="https://cercind.gov.in/index-en.html" target="_blank" rel="noopener">CERC</a>) has proposed including pumped storage projects as an eligible category in the High Price-Day Ahead Market (HP-DAM) segment on power exchanges.
The proposal follows recommendations from the National Load Despatch Centre (NLDC) and the Ministry of Power to include pumped storage projects in the HP-DAM eligibility list.
The Union Government <a href="https://www.mercomindia.com/government-high-price-day-ahead-market-surplus-power-portal" target="_blank" rel="noopener">launched</a> HP-DAM in 2023, aiming to ensure greater power availability during the peak demand season.
Background
Through orders issued in 2023, the Commission permitted power exchanges to introduce gas-based generating stations using imported regasified liquefied natural gas and naphtha; imported coal-based generating stations using only imported coal; and battery energy storage systems (BESS) as categories of generating stations in the HP-DAM segment.
It also directed NLDC to compile a list of recommendations to include other resources in the HP-DAM eligibility list.
In April 2023, the Ministry of Power called for pumped storage and other storage projects to be allowed to participate in all market segments of power exchanges, including HP-DAM, so that they could take advantage of the price differential between peak and off-peak tariffs.
In July 2026, NLDC recommended that the Commission include pumped storage projects in HP-DAM&#8217;s eligibility list. Shortly after, the Ministry of Power backed the suggestion, given the critical role of such projects in providing long-duration energy storage, peak power support, and grid-balancing services.
In support of its recommendation, NLDC submitted an analysis of the current capacity and levelized tariffs of pumped storage projects, HP-DAM liquidity, and the opportunity available in the Day Ahead Market (DAM). According to NLDC, pumped storage projects’ current operational capacity in India was 7.43 GW. Of the total operational capacity, 4.85 GW was on-stream capacity and 2.58 GW was off-stream.
It highlighted that pumped storage projects with merchant capacity may have an additional market avenue to undertake energy arbitrage during periods of high price discovery.
NLDC also examined prevailing liquidity and market-clearing outcomes in HP-DAM from April 2025 to July 2026. The HP-DAM liquidity outcomes showed that market clearing occurred on 47 days (9.65% of the analysis period) and 965 time blocks (2.06% during the analysis period), indicating that HP-DAM currently constitutes a relatively limited market segment in terms of trading activity and liquidity.
While HP-DAM has demonstrated higher market clearing prices relative to DAM during certain intervals, actual revenue realization for projects might vary with prevailing market conditions and liquidity levels.
In its analysis, NLDC observed that the levelized costs of such projects can range from ₹3.3 ($0.0347)/kWh to ₹4.98 ($0.0524)/kWh for the levelized fixed cost component. At the same time, the effective landed tariff may reach ₹8.92 ($0.0938)/kWh, depending on project-specific characteristics and operating assumptions.
NLDC also submitted an analysis of the price differential between solar and evening peak hours in the DAM between April 2025 and July 2026 to assess the arbitrage opportunity available to pumped storage projects. It noted that market-clearing prices differed significantly between solar, which averaged around ₹2.2 ($0.0231)/kWh, and evening peak hours, which averaged about ₹6.57 ($0.0691)/kWh.
NLDC observed that the difference between solar hour and evening peak hour prices indicated a potential arbitrage opportunity of approximately ₹4.37 ($0.0460)/kWh for pumped storage projects.
Commission’s Analysis
Based on NLDC’s recommendation and analysis, the Commission noted that pump storage projects’ participation in HP-DAM would provide them with an opportunity to access periods of higher demand and improve their commercial viability. It would also facilitate greater utilization of projects’ flexible storage resources during periods of constrained supply.
Considering the growing operational and under-construction capacity of pumped storage projects and the need for flexible reserves, the Commission expressed the preliminary view that such projects may be permitted to participate in the existing HP-DAM segment.
The Commission proposed initiating suo motu proceedings and issuing a public notice to hear stakeholders under Regulation 56 of the Conduct of Business Regulations, 2023. It directed the parties concerned to submit their written representations within 15 days of the October 28, 2026 order.
India’s total installed pumped storage project (PSP) capacity is expected to <a href="https://www.mercomindia.com/cea-highlights-pumped-storage-as-base-load-to-address-peak-power-demand" target="_blank" rel="noopener">reach</a> approximately 87 GW by 2033-34, according to the Central Electricity Authority’s Roadmap to 100 GW of Hydro Pumped Storage Projects by 2035-36.
Subscribe to Mercom’s real-time <a href="https://www.mercomindia.com/product/mercoms-renewable-energy-regulatory-updates" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

CERC Proposes Including Pump Storage Projects in High Price-Day Ahead Market

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					</table>Gujarat Urja Vikas Nigam (<a href="https://www.guvnl.com/" target="_blank" rel="noopener">GUVNL</a>) has invited bids from consultants to help prepare tender documents and carry out the bidding process to procure energy storage capacity from pumped storage projects (PSPs) on a long-term basis.
The last day to submit the bids is October 7, 2023. Bids will be opened on October 11.
Bidders must submit a tender processing fee of ₹15,000 (~$181) and an earnest money deposit of ₹50,000 (~$603).
The selected consultant must submit a security deposit of 10% of the total contract value within ten days of issuance of the work order.
The scope of work includes the preparation of tender documents, assisting GUVNL in floating the tender, holding bidders’ conference, assistance in conducting e-bidding, evaluation of technical and financial bids, and support to GUVNL for adoption of tariff before the Gujarat Electricity Regulatory Commission.
The estimated duration of the assignment is five months. However, the assignment will terminate only after concluding the tender and finalizing the tariff.
Bidders must have a minimum average annual turnover of ₹500 million (~$6.03 million) from consultancy services during the three preceding financial years. They should have a positive net worth.
Any delay attributable to the consultant beyond the scheduled completion period of the entire work will attract liquidated damages at 0.5% of the contract value per week, subject to a maximum of 10% of the contract value.
The Ministry of Power recently <a href="https://www.mercomindia.com/guidelines-developing-pumped-storage-projects" target="_blank" rel="noopener">released</a> guidelines to regulate and promote the development of pumped storage projects in the country. These guidelines clarified the methods for allotment of project sites through competitive bidding and ruled out any upfront premium for project allocation to make it financially viable.
Last December, the Ministry <a href="https://www.mercomindia.com/ministry-of-power-waives-ists-charges-hydropower-projects" target="_blank" rel="noopener">issued</a> an order waiving the interstate transmission system charges on evacuating electricity from new hydropower projects in the country. This waiver is available to hydropower projects for which construction work is awarded, and power purchase agreements are signed by June 30, 2025.
Subscribe to Mercom’s <a href="https://www.mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of real-time tender activity.

Gujarat DISCOM Floats Consultancy Tender for Pumped Storage Projects

From: <a href="https://mercomcapital.com/project-finance-brief-cip-acquires-hydro-projects/" target="_blank" rel="noopener">Mercom Capital Group</a>
Copenhagen Infrastructure Partners (CIP) has <a href="https://tinyurl.com/mercomcasl" target="_blank" rel="noopener noreferrer">acquired</a> ownership of the Swan Lake (Klamath County, Oregon) and Goldendale (Klickitat County, Washington) closed-loop pump storage hydro projects. The projects were previously owned and in development under a joint venture between Rye Development and National Grid. Swan Lake is a 400 MW project that secured its 50-year Federal Energy Regulatory Commission (FERC) license in 2019. Goldendale is a 1,200 MW project that has filed an application with FERC in June of 2020. Rye will continue to lead the development of the two projects until the start of construction.
Ameresco, an energy efficiency and renewable energy company, <a href="https://www.ameresco.com/ameresco-secures-up-to-30m-construction-loan-facility-with-fifth-third-bank/" target="_blank" rel="noopener noreferrer">announced</a> that it had closed a construction loan facility for up to $30 million to finance solar projects and assets. The financing was secured through a construction loan facility from Fifth Third Bank, National Association. This non-recourse facility allows Ameresco to draw loan proceeds for solar projects in construction to bridge their permanent financing or sale upon commercial operation.
Q CELLS, a total energy solutions provider, has <a href="https://tinyurl.com/mercompdht" target="_blank" rel="noopener noreferrer">secured</a> the project development rights for a 429 MW solar portfolio in Spain from RIC Energy, further boosting Q CELLS’ downstream solar pipeline in the country. Q CELLS’ downstream business unit signed an agreement to purchase 429 MW of new solar capacity in Spain, projected to achieve ‘Ready to Build’ status by the fourth quarter of 2021.
Cypress Creek Renewables, a developer and owner of solar generating assets, <a href="https://tinyurl.com/mercomcypr" target="_blank" rel="noopener noreferrer">announced</a> that it had closed a seven-year, $200 million debt financing for the holding company that owns Cypress Creek’s 1.6 GW portfolio of operating solar projects. The facility finances a portfolio comprised of more than 200 solar and storage projects across 13 states. Investec Power and Infrastructure Finance &#8211; North America acted as sole bookrunner, coordinating lead arranger and administrative agent on the transaction. In addition to Investec, other joint lead arrangers for the transaction included Credit Agricole, East West Bank, and Silicon Valley Bank.
For reports and trackers on funding and M&amp;A transactions in solar, energy storage, smart grid, and efficiency sectors, click <a href="https://mercomcapital.com/clean-energy-reports/" target="_blank" rel="noopener noreferrer">here</a>.
Read last week’s project finance <a href="https://mercomindia.com/project-finance-brief-luxcara-acquires-solar/" target="_blank" rel="noopener noreferrer">brief</a>.
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Image credit: Saulelis at English Wikipedia, CC BY-SA <a href="https://creativecommons.org/licenses/by-sa/3.0" target="_blank" rel="noopener noreferrer">3.0</a>, via Wikimedia Commons

Project Finance Brief: CIP Acquires 1.6 GW of Pumped Storage Hydro Projects in the US

Copenhagen Infrastructure Partners (CIP) has <a href="https://tinyurl.com/mercomcasl" target="_blank" rel="noopener noreferrer">acquired</a> ownership of the Swan Lake (Klamath County, Oregon) and Goldendale (Klickitat County, Washington) closed-loop pump storage hydro projects. The projects were previously owned and in development under a joint venture between Rye Development and National Grid. Swan Lake is a 400 MW project that secured its 50-year Federal Energy Regulatory Commission (FERC) license in 2019. Goldendale is a 1,200 MW project that has filed an application with FERC in June of 2020. Rye will continue to lead the development of the two projects until the start of construction.
Ameresco, an energy efficiency and renewable energy company, <a href="https://www.ameresco.com/ameresco-secures-up-to-30m-construction-loan-facility-with-fifth-third-bank/" target="_blank" rel="noopener noreferrer">announced</a> that it had closed a construction loan facility for up to $30 million to finance solar projects and assets. The financing was secured through a construction loan facility from Fifth Third Bank, National Association. This non-recourse facility allows Ameresco to draw loan proceeds for solar projects in construction to bridge their permanent financing or sale upon commercial operation.
Q CELLS, a total energy solutions provider, has <a href="https://tinyurl.com/mercompdht" target="_blank" rel="noopener noreferrer">secured</a> the project development rights for a 429 MW solar portfolio in Spain from RIC Energy, further boosting Q CELLS’ downstream solar pipeline in the country. Q CELLS’ downstream business unit signed an agreement to purchase 429 MW of new solar capacity in Spain, projected to achieve ‘Ready to Build’ status by the fourth quarter of 2021.
Cypress Creek Renewables, a developer and owner of solar generating assets, <a href="https://tinyurl.com/mercomcypr" target="_blank" rel="noopener noreferrer">announced</a> that it had closed a seven-year, $200 million debt financing for the holding company that owns Cypress Creek’s 1.6 GW portfolio of operating solar projects. The facility finances a portfolio comprised of more than 200 solar and storage projects across 13 states. Investec Power and Infrastructure Finance – North America acted as sole bookrunner, coordinating lead arranger and administrative agent on the transaction. In addition to Investec, other joint lead arrangers for the transaction included Credit Agricole, East West Bank, and Silicon Valley Bank.
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<div id="google_ads_iframe_/21687197725/SGD728_0__container__">For reports and trackers on funding and M&amp;A transactions in solar, energy storage, smart grid, and efficiency sectors, click <a href="https://cms.mercomindia.com/clean-energy-reports/" target="_blank" rel="noopener noreferrer">here</a>.</div>
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Read last week’s project finance <a href="https://cms.mercomindia.com/project-finance-brief-luxcara-acquires-solar-project-belectric/" target="_blank" rel="noopener noreferrer">brief</a>.
Image credit: Saulelis at English Wikipedia, CC BY-SA <a href="https://creativecommons.org/licenses/by-sa/3.0" target="_blank" rel="noopener noreferrer">3.0</a>, via Wikimedia Commons

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