Adani Group to Develop 2,250 MW Gandikota-2 Pumped Storage Project in Andhra Pradesh

As per the news reports, the Andhra Pradesh government 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, part of the Adani Group.  

The approval followed clearance from the State Investment Promotion Board (SIPB), chaired by Chief Minister N. Chandrababu Naidu, as per news reports. 

The project will come up at the Lord Balaji Donthi Kona PSP Park under the Andhra Pradesh Integrated Clean Energy Policy 2024. The state government has set a completion timeline of 72 months for the project. 

Water Allocation for the Facility 

The government has sanctioned 29.20 million cubic metres (MCM) of water from the Gandikota reservoir for one-time initial filling of the project. An additional 2.20 MCM per year has been approved to account for evaporation losses, subject to existing guidelines. 

Pumped storage projects are used to store electricity generated during periods of lower demand and release it when demand rises. The system works by moving water between reservoirs located at different elevations. 

Renewable Energy Storage Push 

India has been increasing investments in pumped storage projects alongside the expansion of solar and wind energy capacity.  

According to government data, Andhra Pradesh has emerged as one of the states with a growing pipeline of pumped storage projects under planning and development. Several projects are being taken up under the state’s clean energy policy framework. 

Part of Wider Energy Plans 

The Andhra Pradesh Integrated Clean Energy Policy 2024 aims to attract investments worth nearly ₹10 trillion and generate employment for around 7.5 lakh people across the clean energy sector. 

The Adani Group has also been adding pumped storage projects in states including Andhra Pradesh, Maharashtra and Uttar Pradesh as part of its renewable energy portfolio.  

The state government said the Gandikota-2 project is expected to support sectors including manufacturing, electric mobility, green hydrogen and data centres. 

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Conclusion 

With the approval of the Gandikota-2 PSP, Andhra Pradesh continues to add large-scale energy storage projects linked to renewable energy growth. 

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