CIL, NHPC may convert old mines to pump storage

State-run Coal India Ltd and India’s largest hydropower company NHPC Ltd may join hands to explore the possibility of converting abandoned or closed mines into pump storage projects (PSP).

A person aware of the development said the coal ministry under its plan to set up PSPs at “de-coaled areas", where all the coal has been mined, has directed Coal India to partner with NHPC and other related agencies. Coal India is currently in the process of appointing a consultant for the project.

PSPs are hydro-projects where two reservoirs at different heights generate power as water moves through turbines.

“Because in our coal mines we have huge height, if a storage is created at the top then during day time, there would be solar (power), (through which) water can be stored there and during the night hydro power can be generated," said the person.

Another person said some of the closed mines may be auctioned out on an ‘as is where is’ basis for setting up of PSPs, from which they developer-cum-operator would be able to sell power.

Responding to a query, the coal ministry said: “Ministry has asked Coal India to coordinate with related agencies to explore the possibility of converting its de-coaled mines to pump storage projects in a bid to boost energy transition."