Adani Hydro Energy Eleven Ltd. (AHE11L), a subsidiary of Adani Green Energy, has secured state approval to develop the 2,250 MW Gandikota-2 Pumped Storage Project (PSP) in YSR Kadapa district, Andhra Pradesh. The clearance, granted by the State Investment Promotion Board (SIPB) chaired by Chief Minister N. Chandrababu Naidu, positions the project as one of the largest pumped storage undertakings in India.

Project Details and Location

The Gandikota-2 PSP will come up at the Lord Balaji Donthi Kona PSP Park in YSR Kadapa district, developed under the Andhra Pradesh Integrated Clean Energy Policy 2024. The project is scheduled for completion within 72 months of commencement. As part of the approval, the government has sanctioned 29.20 MCM of water for one-time initial filling and 2.20 MCM annually to cover evaporation losses from the existing Gandikota reservoir.

How Pumped Storage Works and Why It Matters

Pumped storage projects are globally recognised as the backbone of renewable-heavy power grids. They store surplus solar and wind energy during off-peak hours by pumping water uphill, then release it through turbines during peak demand — enabling stable, round-the-clock clean power delivery. India is currently accelerating pumped storage capacity expansion as it scales up renewable energy integration, and according to government data, Andhra Pradesh has emerged as one of the leading destinations for such development.

The Gandikota-2 project is expected to significantly bolster the state's renewable energy balancing capabilities while supporting its growing ecosystem of green hydrogen, advanced manufacturing, electric mobility, and AI-driven data centres.

Policy Incentives and Investment Targets

The project qualifies for incentives under the Andhra Pradesh Integrated Clean Energy Policy 2024, which targets investments of nearly ₹10 lakh crore and aims to generate employment for approximately 7.5 lakh people across the clean energy value chain. Officials reiterated that the state continues to attract large-scale energy investments owing to policy stability, fast-track approvals, strong transmission planning, and an integrated industrial-energy development framework.

Adani Group's Broader Storage Push

The Adani Group has been expanding its national pumped storage portfolio across multiple states, including Maharashtra and Uttar Pradesh, as part of its wider energy transition strategy. Industry experts view large-scale storage assets such as Gandikota-2 as critical enablers for India's future energy economy, particularly for energy-intensive digital infrastructure like hyperscale data centres. This approval further cements Andhra Pradesh's standing as a preferred destination for Adani's clean energy capital.

With construction expected to span six years, the project's completion will mark a significant milestone in India's push to build dispatchable renewable capacity at scale.