Uttarakhand Launches PSP Policy to Boost Green Energy Investment

Dehradun: The Uttarakhand government has implemented the Uttarakhand Pumped Storage Project (PSP) Policy to meet rising energy demand, strengthen renewable energy integration and attract investment in the power sector.

The policy aims to promote pumped storage projects across the state and has classified them into on-stream and off-stream projects. Government companies will receive eligible on-stream projects through nomination, while private developers will be selected through competitive bidding. For off-stream projects, developers can propose suitable sites based on feasibility and water storage potential.

Key Incentives for Developers

The policy offers several incentives, including more than 50% relief on intra-state transmission charges for five years for projects commissioned before the end of FY 2033-34. Eligible off-stream projects will also get exemption from the Local Area Development Fund.

The state government will further provide exemption from free royalty power, reducing project costs and improving investment viability.

Through the policy, Uttarakhand aims to integrate solar and wind energy more efficiently, utilise its water resources and establish itself as a major green energy and investment hub.

Himalayan Live Bureau