Adani Green Energy to develop 2,250 MW pumped storage project in Andhra Pradesh
Amaravati, May 20
Adani Hydro Energy Eleven Ltd., part of the diversified Adani Green Energy, will develop the 2,250 MW Gandikota-2 Pumped Storage Project in YSR Kadapa district of Andhra Pradesh.
The state government approved the allocation of the project to AHE11L, which is expected to further strengthen the state's position as India's emerging clean energy and energy storage hub, said an official release on Wednesday.
The project, to be developed by the Adani Group under the Andhra Pradesh Integrated Clean Energy Policy 2024, is expected to become one of the largest pumped storage projects in the country and a key pillar of Andhra Pradesh's next-generation power infrastructure strategy.
The approval was accorded following clearance by the State Investment Promotion Board (SIPB), chaired by Chief Minister N. Chandrababu Naidu.
The Gandikota-2 PSP will be developed at the Lord Balaji Donthi Kona PSP Park in YSR Kadapa district. The project is expected to significantly strengthen Andhra Pradesh's renewable energy balancing and storage capabilities while supporting the state's rapidly growing ecosystem of green hydrogen, advanced manufacturing, electric mobility, and AI-driven data centres.
Globally, pumped storage projects are increasingly viewed as the backbone of renewable-heavy power systems, enabling stable, round-the-clock clean energy by storing surplus solar and wind power during off-peak hours and releasing it during peak demand periods, said the release.
India is witnessing rapid expansion in pumped storage capacity as the country accelerates its transition towards large-scale renewable energy integration. According to Government of India data, Andhra Pradesh has emerged as one of the leading destinations for pumped storage development with a significant pipeline of projects under implementation.
The Adani Group has also been expanding its national pumped storage portfolio as part of its broader renewable energy and energy transition strategy, with projects across multiple states, including Andhra Pradesh, Maharashtra, and Uttar Pradesh.
Andhra Pradesh has already emerged as a major destination for Adani Group's clean energy investments, including pumped storage and renewable energy infrastructure projects. Industry experts view large-scale storage assets such as Gandikota-2 as critical enablers for India's future energy economy and for supporting energy-intensive digital infrastructure such as hyperscale data centres.
As part of the approvals, the government has sanctioned allocation of 29.20 MCM of water for one-time initial filling and 2.20 MCM annually towards evaporation losses from the existing Gandikota reservoir, subject to prevailing guidelines.
The project will also be eligible for incentives under the Andhra Pradesh Integrated Clean Energy Policy 2024, which targets investments worth nearly Rs 10 lakh crore and aims to generate employment for approximately 7.5 lakh people across the clean energy value chain.
The government reiterated that Andhra Pradesh continues to attract some of India's largest energy and infrastructure investments due to its policy stability, fast-track approvals, strong transmission planning, and integrated approach towards industrial and clean energy development.
The Gandikota-2 PSP is scheduled to be completed within 72 months.
— IANS
Reader Comments
What is the cost to the environment and local people? Every big project like this, the displaced families are forgotten. 72 months is a long time - will there be proper rehabilitation and water sharing? Gandikota reservoir water shouldn't be monopolized by Adani.
Finally, AP is leveraging its natural terrain for pumped storage! The Eastern Ghats region has so much potential. This combined with solar parks in Anantapur could make AP a true green energy powerhouse. Just hope local youth get priority in the 7.5 lakh jobs promised! ✨
Interesting to see global parallels. The US and Europe are investing heavily in pumped storage hydro, and India is taking the right step. But 29 million cubic meters of water in a drought-prone region? That's concerning. Need more transparent environmental impact assessment.
Adani Group getting project after project... monopoly is worrying! Yes, we need clean energy but at what cost? What about smaller players? The SIPB should have opened this for competitive bidding instead of direct allocation. CBN must ensure transparency 🙏
As an energy sector professional, I can vouch that pumped storage is the future. Germany's Black Forest, Colorado in US - they all use this tech. For India, with 500 GW renewable target by 2030, we need at least 50 GW storage. This project plus others in AP, Maharashtra will be crucial. Well done!
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