Indian Bureaucracy, Gurugram, March 12, 2025 | REC Limited, a Maharatna CPSE under the Ministry of Power and a leading NBFC for clean energy, today signed an MoU with the Energy Management Centre (EMC), Government of Kerala, for collaboration and financing of Pumped Storage Projects (PSP) in Kerala. The MoU was signed during the Global Green Hydrogen and Renewable Energy Summit 2025 at Kochi.
Under the agreement, REC Ltd will finance ₹18,360 crore for pump storage project development in Kerala over the next five years, supporting the state’s clean energy initiatives. This collaboration will be facilitated through the Energy Management Centre – Kerala (EMC), the nodal agency for energy sector transformation and sustainable development. The EMC is also the State Designated Agency (SDA) for the Bureau of Energy Efficiency (BEE), responsible for coordinating and implementing the Energy Conservation Act 2001.
What is Kerala Pumped Storage Project
The Kerala Pumped Storage Projects (PSPs) are hydroelectric facilities designed to enhance energy storage and grid stability within the state. These projects operate by moving water between two reservoirs at different elevations, effectively storing energy for later use. During periods of low electricity demand, excess energy is used to pump water to the upper reservoir. When demand is high, the stored water is released back to the lower reservoir through turbines, generating electricity. This mechanism allows for efficient energy management, balancing supply and demand, and integrating renewable energy sources into the grid.
Recognizing the potential of PSPs, the Government of Kerala, through its Energy Management Centre (EMC), has identified several potential sites for their development. A pre-feasibility study is planned to assess these sites, with the two most viable options proceeding to a detailed feasibility report in the program’s second phase.
Kerala’s Natural Resources
The coastal state of Kerala is bordered by the Arabian Sea to the west and the Western Ghats to the east, with Karnataka to the northeast and Tamil Nadu to the southeast. The state has abundant freshwater resources, supported by its geography, climate, and 44 rivers, of which 41 flow westward and 3 eastward.
MoU Signing Ceremony
The MoU was exchanged by Shri Saurabh Rastogi, Executive Director, REC, and Shri Dinesh Kumar A N, Joint Director, EMC, during the summit. The signing took place in the presence of Shri K R Jyothilal IAS, Additional Chief Secretary (Power), Government of Kerala; Shri M Udaya Kumar, CPM, REC, Kerala, along with other dignitaries from EMC and the Kerala government.
