In a significant move to strengthen its clean energy infrastructure, the Andhra Pradesh government has approved a massive 2,250 MW pumped storage project in YSR Kadapa district, further boosting the state’s vision of becoming a major destination for renewable energy investments in India. The project has been awarded to Adani Hydro Energy Eleven Ltd, a subsidiary of Adani Group, under the state’s ambitious Integrated Clean Energy Policy-2024.
The proposed Gandikota-2 Pumped Storage Project will be developed at the Lord Balaji Donthi Kona PSP Park in Kadapa district and is expected to become one of the country’s largest pumped hydro energy storage facilities. The proposal received final approval during a meeting of the State Investment Promotion Board chaired by N. Chandrababu Naidu.
The project is part of the Andhra Pradesh government’s larger plan to attract major investments in renewable energy, energy storage systems, green industries, and power infrastructure. Through its clean energy policy, the state aims to bring in nearly ₹10 lakh crore in investments while creating around 7.5 lakh job opportunities in the coming years.
Pumped storage projects are becoming increasingly important for India’s renewable energy transition. These systems use surplus electricity generated from solar and wind energy during low-demand periods to pump water to an upper reservoir. During peak demand hours, the stored water is released to generate hydroelectric power, helping maintain grid stability and ensuring a reliable power supply.
According to government orders, the project has been allowed to use 29.2 million cubic metres of water from the Gandikota reservoir during the initial phase. In addition, 2.2 million cubic metres of water per year have been approved to compensate for evaporation losses, subject to regulatory guidelines.
The Andhra Pradesh government has directed the company to complete the project within 72 months. The electricity generated from the facility can be supplied both within the state and outside Andhra Pradesh. Andhra Pradesh Transmission Corporation Limited will facilitate connectivity to nearby substations, while the developer will independently build the required transmission infrastructure.
Officials believe the project will play a major role in strengthening Andhra Pradesh’s position in India’s rapidly growing green energy sector.
Electrify your feed! Click here to join our Whatsapp group and to get the latest updates, expert insights, and innovations driving India’s energy storage revolution.
