Adani Green Announces 2,250 MW Pumped Storage Project in Andhra Pradesh

The Government of Andhra Pradesh has approved the allocation of the 2,250 MW Gandikota-2 Pumped Storage Project (PSP) in YSR Kadapa district to Adani Hydro Energy Eleven Ltd. (AHE11L), marking a significant addition to the state’s expanding renewable energy and storage infrastructure. The project is part of the Andhra Pradesh Integrated Clean Energy Policy 2024 and is expected to play a key role in strengthening large-scale power balancing capacity.

The approval was granted following clearance from the State Investment Promotion Board (SIPB), which is chaired by Chief Minister N. Chandrababu Naidu. The Gandikota-2 PSP will be developed within the Lord Balaji Donthi Kona PSP Park and is positioned as one of India’s largest pumped storage projects once completed. Pumped storage projects function as large-scale energy storage systems that help balance electricity demand by storing surplus power during low-demand periods and releasing it during peak consumption.

Officials said the project will significantly enhance Andhra Pradesh’s ability to integrate renewable energy sources such as solar and wind into the grid more efficiently and reliably. The state government said the project will also support broader industrial expansion in areas such as green hydrogen, electric mobility, advanced manufacturing, and AI-driven data centre infrastructure. These sectors are expected to benefit from stable and scalable clean energy availability enabled by storage-linked power systems.

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Globally, pumped storage is increasingly being recognised as a critical backbone of renewable energy systems due to its ability to provide round-the-clock power stability. India, in particular, has been accelerating investments in such infrastructure as it expands its renewable energy capacity and transitions toward low-carbon energy systems. As part of the approval, the state has sanctioned 29.20 million cubic metres (MCM) of water for the initial filling of the reservoir and an additional 2.20 MCM annually to compensate for evaporation losses, subject to regulatory guidelines. The project is also eligible for incentives under the state’s clean energy policy, which aims to attract investments worth nearly ₹10 lakh crore and generate approximately 7.5 lakh jobs.

The Adani Group has been expanding its pumped storage and renewable energy portfolio across multiple states, including Andhra Pradesh, Maharashtra, and Uttar Pradesh. Officials and industry experts view projects like Gandikota-2 as essential for ensuring long-term grid stability and supporting energy-intensive digital infrastructure. The Gandikota-2 PSP is scheduled for completion within 72 months, with the state government emphasising policy stability, fast-track approvals, and integrated energy planning as key drivers of continued investment in Andhra Pradesh’s clean energy sector.

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