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Power Secy: Rajasthan, Gujarat Ripe for Energy Arbitrage & Storage
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CNBC TV18•24-09-2026, 14:52
Power Secy: Rajasthan, Gujarat Ripe for Energy Arbitrage & Storage
- •Power Secretary Pankaj Agarwal identifies Rajasthan and Gujarat as having substantial potential for energy arbitrage and battery storage, driven by their available renewable energy.
- •He points out the challenges of geographically concentrated renewable energy capacity and underutilized transmission infrastructure.
- •The government is actively working on the National Electricity Policy (NEP) 2026, with a focus on strengthening discoms, enhancing open access, and implementing regulatory reforms.
- •The new policy will incorporate eligibility mandates for Green Hydrogen projects and data centers, catering to very large, flexible electricity loads.
- •Agarwal also mentions 16 GW of Pumped Storage Projects (PSPs) are being considered, which could reduce reliance on expensive synchronous condensers.
Key Questions Answered
Rajasthan and Gujarat feature large amounts of bottled-up renewable energy and face challenges from the geographical concentration of renewable energy capacity, creating ideal conditions for energy arbitrage and battery storage according to Power Secretary Pankaj Agarwal.
The proposed National Electricity Policy 2026 focuses on financially stronger distribution companies, greater open access, and essential regulatory reforms, while also incorporating eligibility mandates for Green Hydrogen projects and data centres.
Pumped Storage Projects with a combined capacity of 16 GW are currently under consideration to help reduce the need for synchronous condensers, which typically cost around ₹2 crore per MW.
