In an attempt to reduce the dependence of power exchange and short-term power purchase agreements to meet sudden peaks in demand, particularly in summer, the government aims to set up 15 new pumped storage facilities with a capacity of 14,500 MW projects by 2030. Proposed to be set up in public-private partnership mode, this is estimated at ₹77,000 crore, said finance minister Palanivel Thiagarajan.
Currently, TN has just one pumped storage facility, of 400MW capacity, at Kadamparai in Anaimalai Hills set up during 1974-89. The underground facility is one of the first in the country. During off-peak hours, when the power demand is less, water from Kadamparai dam is pumped to Upper Aliyar river from where it will be released to Kadamparai dam again to generate power when the demand goes up.
