Welspun New Energy has signed a memorandum of understanding (MoU) with the Maharashtra government for a 1.2 GW pumped hydroelectric storage project. The 'Dhamni Pumped Hydro project', would be constructed with an investment of approx. Rs 5,000 crore project and will come up in the Pune and Raigad districts over the next six to seven years.

The MoU was signed at an event in Mumbai on 03 August, 2024 in the presence of Deputy Chief Minister Devendra Fadnavis. Further, the project also provides an opportunity for long duration energy storage to manage variable supply and variable demand and would enhance grid stability. The company aims to establish five GW of renewable energy and two million tpa of green derivatives (ammonia/methanol) capacity by 2030.

The project will be helpful in increasing the renewable penetration in the grid and provide stability to the intermittency of renewable energy generation.

The MoU is critical as in its Panchamrit pledge, India has set a target of achieving 500 GW of renewable energy capacity by 2030, and pumped hydro projects are seen as key to this transition, for its energy backup capability to mitigate the variability of wind and solar power.