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

Overview

The Velimalai Pumped Storage Hydro Electric Project is a 1,100 MW power plant planned in Kanniyakumari district, Tamil Nadu. It recently received Terms of Reference (ToR) clearance from the Union Ministry of Environment, Forest and Climate Change. This is Tamil Nadu’s first such project under a public-private partnership model. It will help manage peak electricity demand and support renewable energy.

Latest News: ToR Clearance Granted

Good news came for Tamil Nadu’s energy sector. The Union Ministry of Environment, Forest and Climate Change recently gave Terms of Reference (ToR) clearance to the Velimalai Pumped Storage Hydroelectric Project. This clearance is an early but important step. It means the project can now prepare detailed environmental studies. The 1,100 MW plant will come up in Kanniyakumari district.

Where Is the Project Located?

The project is located at Vellimalai in the Kanyakumari district of Tamil Nadu. This is the southernmost part of India. The area has hills and small water bodies, which are suitable for pumped storage projects.

What Is the Installed Capacity?

The project has an installed capacity of 1,100 MW. It will have an underground powerhouse with four units. Each unit will produce 275 MW. Together, they add up to 1,100 MW.

A First for Tamil Nadu: Public-Private Partnership

This is the first project in Tamil Nadu to be developed under the public-private partnership (PPP) model. The model is called build-own-operate-transfer (BOOT). This is done in accordance with Section 63 of the Electricity Act. In simple words, a private company will build, own, and run the plant. Later, it will be transferred to the government. This brings private efficiency to public energy needs.

Closed-Loop Off-River System: What Does It Mean?

The project is planned as a closed-loop off-river system. This is a smart and environment-friendly design. Let us understand:

• Closed-loop  means water does not come from a river continuously. Instead, the same water moves between two reservoirs again and again.

• Off-river  means the reservoirs are not built on a perennial river or stream. They are created away from natural flowing rivers.

This design has a big benefit. It does not disturb the natural flow of rivers. It also avoids displacing many people or harming river ecosystems.

The Two New Reservoirs

The project will build two new off-river reservoirs:

1. Upper Reservoir

   • Gross storage capacity: 4.39 million cubic metres

   • Located at a higher elevation

2. Lower Reservoir

   • Gross storage capacity: 4.91 million cubic metres

   • Built upstream of the existing Mambazhathuraiyar dam

Both reservoirs are artificial. They will