Amarawati, May 20: Adani Hydro Energy Eleven Ltd. (AHE11L), a subsidiary of Adani Green Energy, will develop the 2,250 MW Gandikota-2 Pumped Storage Project (PSP) in Andhra Pradesh’s YSR Kadapa district following approval from the state government.
According to an official release issued on Wednesday, the project allocation is expected to reinforce Andhra Pradesh’s position as an emerging clean energy and energy storage hub in India.
The project, to be developed under the Andhra Pradesh Integrated Clean Energy Policy 2024, is expected to become one of the country’s largest pumped storage facilities and a key component of the state’s next-generation power infrastructure strategy.
Approval for the project was granted following clearance by the State Investment Promotion Board (SIPB), chaired by Chief Minister N. Chandrababu Naidu.
The Gandikota-2 PSP will be established at the Lord Balaji Donthi Kona PSP Park in YSR Kadapa district and is expected to enhance Andhra Pradesh’s renewable energy balancing and storage capabilities.
The project is also expected to support the state’s expanding clean energy ecosystem, including green hydrogen, advanced manufacturing, electric mobility and AI-driven data centres.
Pumped storage projects are increasingly regarded globally as essential infrastructure for renewable-heavy power systems, enabling round-the-clock clean energy supply by storing excess solar and wind power during low-demand periods and releasing it during peak consumption hours.
India is witnessing rapid growth in pumped storage capacity as the country advances large-scale renewable energy integration, with Andhra Pradesh emerging as a major destination for such developments, according to government data.
The Adani Group has been expanding its pumped storage portfolio nationwide as part of its broader energy transition strategy, with projects across states including Andhra Pradesh, Maharashtra and Uttar Pradesh.
Industry experts view large-scale storage assets such as Gandikota-2 as critical for supporting India’s evolving energy economy and meeting the power requirements of energy-intensive infrastructure such as hyperscale data centres.
As part of the approval, the Andhra Pradesh government sanctioned allocation of 29.20 million cubic metres (MCM) of water for one-time project filling and 2.20 MCM annually to offset evaporation losses from the Gandikota reservoir, subject to applicable guidelines.
The project will also qualify for incentives under the Andhra Pradesh Integrated Clean Energy Policy 2024, which seeks investments of nearly Rs 10 lakh crore and aims to generate employment for around 7.5 lakh people across the clean energy value chain.
The state government said Andhra Pradesh continues to attract major energy and infrastructure investments due to policy stability, faster approvals, robust transmission planning and an integrated industrial and clean energy development approach.
The Gandikota-2 Pumped Storage Project is scheduled for completion within 72 months.
