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Velimalai Pumped Storage Hydro Electric Project: Tamil Nadu’s First PPP Energy Storage Plant

May 21, 2026
not take water from perennial rivers. Water will simply circulate between them in a controlled cycle. There is very little need for natural inflows.

How Does the Pumped Storage Work?

The working of this project is simple to understand:

  • During off-peak hours  (when electricity demand is low, usually at night), the plant uses extra electricity from the grid. This electricity runs pumps. The pumps push water from the lower reservoir to the upper reservoir. This takes about 6.94 hours. The volume of water moved is about 3.94 million cubic metres.

  • During peak hours  (when demand is high, like evening time), the plant releases water from the upper reservoir back to the lower reservoir. As water falls down, it spins turbines. These turbines generate electricity. This generation happens for six hours every day.

The estimated peak annual energy generation is 2,080.55 million KWh. That is a huge amount of clean power.

Why Is This Project Important?

This project helps in two main ways:

  1. Strengthening peak power management  – Tamil Nadu faces high electricity demand during certain hours. This plant can generate power quickly when needed.

  2. Enabling round-the-clock integration of renewable energy  – Solar and wind power are not available all the time. This plant stores extra renewable energy as “water in the upper reservoir.” When the sun is not shining or wind is not blowing, the plant releases water to generate power. This makes renewable energy reliable 24/7.

 

Exam-Focused Points

  • Project name:  Velimalai Pumped Storage Hydro Electric Project

  • Capacity:  1,100 MW (4 units of 275 MW each)

  • Location:  Vellimalai, Kanyakumari district, Tamil Nadu

  • Latest clearance:  Terms of Reference (ToR) from MoEF&CC

  • Type:  Closed-loop off-river pumped storage system

  • First in Tamil Nadu:  PPP model on BOOT basis under Section 63 of Electricity Act

  • Reservoirs:  Two artificial off-river reservoirs (upper: 4.39 Mcum, lower: 4.91 Mcum)

  • Water circulation:  3.94 Mcum pumped up in 6.94 hours; generation for 6 hours/day

  • Annual energy generation:  2,080.55 million KWh

  • Key benefit:  Supports peak power management and 24/7 renewable energy integration

 

FAQs

Q1: Where is the Velimalai Pumped Storage Hydro Electric Project located?
Ans:  It is located at Vellimalai in the Kanyakumari district of Tamil Nadu.

Q2: What is the installed capacity of the Velimalai

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