Tata Power has signed a deal with the government of Maharashtra to develop two large pumped hydro storage projects with a combined capacity of 2.8 GW in the state.

Tata Power will develop the projects at Shirawta, Pune (1.8 GW), and Bhivpuri, Raigad (1 GW), with an estimated investment of $1.57 billion.

Tata Power said the projects will use the kinetic energy of water to create a stable and reliable power supply. During times of excess energy, water will be pumped from a lower reservoir to a higher reservoir, and during peak demand, the stored water will power turbines to generate electricity.

This initiative will significantly enhance energy security in the state by providing peaking and continuous power supply along with other renewables such as solar and wind.

Tata Power Renewable Energy, a unit of Tata Power, recently secured power purchase agreements for 200 MW and 150 MW solar projects located in Maharashtra. It has signed power purchase agreements with MSEDCL.