Adani Hydro Energy Eleven Ltd (AHE11L) will begin work on the 2,250 MW Gandikota-2 Pumped Storage Project (PSP) in YSR Kadapa district under the Andhra Pradesh Integrated Clean Energy Policy 2024, according to an official statement.
The Gandikota-2 PSP will be developed at the Lord Balaji Donthi Kona PSP Park and completed within 72 months, under the Andhra Pradesh Integrated Clean Energy Policy 2024.
According to the statement, Andhra Pradesh’s State Investment Promotion Board (SIPB), chaired by Chief Minister N Chandrababu Naidu, has approved the project, which is expected to become one of the largest pumped storage projects in the country.
Along with the approval, Andhra Pradesh has also sanctioned 29.20 Million Cubic Metres (MCM) of water for a one-time initial filling and 2.20 MCM of water annually, in order to offset evaporation losses from the Gandikota reservoir, subject to applicable guidelines.
The project will also be eligible for incentives under the Andhra Pradesh Integrated Clean Energy Policy 2024, which targets investments of nearly Rs 10 lakh crore and aims to generate around 7.5 lakh jobs across the clean energy value chain.
The project is expected to significantly strengthen Andhra Pradesh’s renewable energy balancing and storage capabilities while supporting the state’s rapidly growing ecosystem of green hydrogen, advanced manufacturing, electric mobility, and AI data centres.
The Adani Group has been expanding its pumped storage portfolio nationwide as part of its broader energy transition strategy, with projects across multiple states, including Andhra Pradesh, Maharashtra and Uttar Pradesh.
The Adani Group is also in the process of setting up the Chitravathi Pumped Storage Project in Andhra Pradesh on the banks of the Chitravathi river.
In Maharashtra, it is in the process of setting up the Tarali Pumped Storage Project, with electromechanical equipment and services being supplied by Andritz.
In Uttar Pradesh, it is setting up the Panaura Pumped Storage Project in Sonbhadra district, awarded by the Uttar Pradesh Power Corporation Limited (UPPCL), which will take roughly six years to construct.
Significantly, all these pumped storage power projects have been designed to pair with the Adani Group’s massive solar and wind deployments. These projects pump water using daytime solar power and then release it at night, in order to ensure power grid stability as well as meet peak power demands.