Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

CEA Approves 7.5 GW of Pumped Storage Projects to Strengthen India’s Energy Security

In a significant boost to India’s renewable energy integration and grid flexibility, the Central Electricity Authority (CEA) has approved Detailed Project Reports (DPRs) for six pumped hydro storage projects (PSPs) with a total capacity of 7.5 GW.

The greenlighting of these projects is part of the government’s accelerated push to develop energy storage infrastructure capable of balancing intermittent renewable energy supply with consistent electricity demand.

Projects Cleared by CEA Include:

• Upper Indravati (600 MW) – Odisha
• Sharavathy (2,000 MW) – Karnataka
• Bhivpuri (1,000 MW) – Maharashtra
• Bhavali (1,500 MW) – Maharashtra
• MP-30 (1,920 MW) – Madhya Pradesh
• Chitravathi (500 MW) – Andhra Pradesh

These DPRs were fast-tracked through appraisals by the Central Water Commission, Geological Survey of India, and Central Soil and Materials Research Station, and approved via the government’s Jalvi Store portal, designed to streamline the project approval process.

National Targets and Potential

The CEA has outlined a target to approve at least 13 PSPs totaling 22 GW in capacity during 2025–26. Most of these projects are expected to become operational within the next four years, and by 2030 at the latest.

India's operational PSP capacity currently stands at 3.5 GW, but that is set to increase sharply:

• 2 PSPs (~3 GW) are expected to be commissioned this year.
• 8 projects (10 GW) are already under construction.
• DPRs for 3 projects (~3 GW) have been cleared.
• 49 projects (66 GW) are under active survey and investigation, with DPRs likely to be finalized within the next two years.

The total estimated PSP potential in India now exceeds 200 GW, a figure that continues to rise, driven by growing private sector interest and grid-scale renewable energy deployment.

Policy and Financial Backing

Recent policy reforms are further catalyzing the growth of PSPs:

• February 2025: The Ministry of Power introduced tariff-based competitive bidding guidelines to procure stored energy from both operational and upcoming PSPs.
• October 2024: Budgetary provisions were expanded, with a total outlay of Rs12,460 crore to support 31 GW of hydro capacity, including 15 GW of PSPs, between 2024–25 and 2031–32.

Why PSPs Matter

As India’s renewable capacity accelerates, particularly with variable sources like solar and wind, pumped storage is becoming critical for managing load variability, ensuring grid stability, and reducing curtailment. PSPs offer one of the most mature and scalable long-duration energy storage solutions and are essential for India’s energy transition and net-zero goals.