Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance
As India accelerates its shift toward renewable energy, pumped storage projects (PSPs) are emerging as a critical solution to address the intermittency of solar and wind power. These projects, often termed ‘water batteries,’ store electricity by pumping water from a lower reservoir to an upper one during periods of excess generation, later releasing it to generate power when demand peaks. With India targeting 500 GW of non-fossil fuel-based capacity by 2030, PSPs play a vital role in balancing grid stability, ensuring reliable supply during peak hours, and facilitating large-scale integration of renewables. The Central Electricity Authority estimates a need for 73.93 GW of storage capacity by 2031-32, including 26.69 GW from PSPs, underscoring their importance in India’s energy transition.
For banking and SSC aspirants, understanding PSPs is relevant as it reflects India’s policy push toward clean energy, infrastructure development, and public-private partnerships in the power sector. RBI Grade B officers, who analyze economic policies and sectoral trends, must grasp how energy storage solutions like PSPs contribute to macroeconomic stability by reducing reliance on fossil fuels and managing grid vulnerabilities. Similarly, for Bank PO and IBPS candidates, questions on renewable energy initiatives, government schemes, or infrastructure financing could draw from this topic, highlighting the intersection of governance, sustainability, and economic growth.
Source: PIB (Press Information Bureau)
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