India's power regulator proposes allowing pumped storage plants in high-price market
- CERC proposes adding pumped storage plants to HP-DAM eligibility
- Parties have 15 days to file written submissions
- NLDC recommended the inclusion in July 2026
Photo: Wikimedia Commons - Shihab E., CC BY 4.0NEW DELHI, Oct 28 — India's Central Electricity Regulatory Commission (CERC) on Oct 28 proposed making pumped storage plants (PSPs) eligible for the High Price Day Ahead Market (HP-DAM), and said it proposed to initiate suo motu proceedings on the proposal.
In the order in Petition No. 13/SM/2026, the commission directed parties to file written submissions within 15 days. It said it proposed to hear the parties under Regulation 56 of the Conduct of Business Regulations, 2023, for which a public notice was being issued.
According to the order, HP-DAM was set up for generating stations with high generation costs, for which the price ceiling in the Day Ahead Market (DAM) could constrain participation. Three categories are currently eligible: gas-based stations using imported RLNG and naphtha, stations using only imported coal, and battery energy storage systems.
"the opportunity available in the present scenario (through the DAM alone) may not be sufficient for PSPs," the commission said in the order.
The commission said HP-DAM participation would give PSPs an opportunity to access periods of higher demand. It said this would improve the commercial viability of such projects.
The National Load Despatch Centre (NLDC) found that HP-DAM cleared on 47 days between April 2025 and July 2026, according to the order.
NLDC recommended including PSPs in letters dated July 2 and July 24, 2026. The Ministry of Power suggested the inclusion in a letter dated July 30, 2026.