Adani Green to develop 2,250 Mw pumped storage project in Andhra Pradesh
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Andhra Pradesh has approved the allocation of the 2,250 megawatt (Mw) Gandikota-2 Pumped Storage Project (PSP) in YSR Kadapa district to Adani Hydro Energy Eleven, strengthening the state’s position as India’s clean energy hub.
Gandikota-2 PSP – scheduled to be completed within 72 months – is one of the largest pumped storage projects in the country and a key pillar of Andhra Pradesh’s power infrastructure strategy.
The State Investment Promotion Board (SIPB), which is chaired by Chief Minister N Chandrababu Naidu, approved the project. Gandikota-2 PSP at Lord Balaji Donthi Kona PSP Park in YSR Kadapa district is expected to strengthen the state’s growing ecosystem of green hydrogen, advanced manufacturing, electric mobility and data centres. Globally, pumped storage projects are viewed as the backbone of renewable-heavy power systems. By storing surplus solar and wind power during off-peak hours and releasing it during peak demand, they enable stable, round-the-clock clean energy.
India is expanding its pumped storage capacity to accelerate large-scale renewable energy integration. According to central government data, Andhra Pradesh has emerged as a leading destination for this development, with a significant pipeline of projects under implementation.
As part of its broader renewable energy and energy transition strategy, the Adani Group is expanding its national pumped storage portfolio with projects across multiple states, including Andhra Pradesh, Maharashtra, and Uttar Pradesh.
Andhra Pradesh is a major destination for Adani Group’s clean energy investments, including pumped storage and renewable infrastructure. Industry experts view large-scale assets like the Gandikota-2 PSP as critical to India’s future energy economy and to supporting energy-intensive digital infrastructure like hyperscale data centers. The Andhra government has approved allocating 29.20 million cubic metres (MCM) of water for one-time initial filling and 2.20 MCM annually towards evaporation losses from the Gandikota reservoir, subject to prevailing guidelines.
The project will be eligible for incentives under the Andhra Pradesh Integrated Clean Energy Policy 2024, which targets investments worth nearly ₹10 trillion and employment for approximately 750,000 people across the clean energy value chain. The state government said 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 toward industrial and clean energy development.
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