CEA Green Lights 7.5 GW of PSP, Eyes 22 GW Expansion In FY26

pumped storage project

The Central Electricity Authority (CEA) cleared 7.5 GW of Detailed Project Reports (DPRs) for hydro-pumped storage projects (PSPs) in FY 2024-25, a significant milestone in India’s push for long-duration energy storage.

The agency has also streamlined the appraisal process through its digital platform “Jalvi Store,” reducing documentation requirements and providing submission checklists to accelerate project clearances. The adoption of off-stream, closed-loop PSPs has contributed to faster evaluations.

The approvals reflect the collaborative efforts of project developers and technical agencies such as the Central Water Commission (CWC), Geological Survey of India (GSI), and Central Soil and Materials Research Station (CSMRS). The CEA, under the Ministry of Power, has set a target of concurring at least 13 PSPs totaling around 22 GW in FY 2025-26. Most of these are expected to be commissioned within four years and by 2030 at the latest.

The approved projects include six schemes across five states:

• Upper Indravati (600 MW) in Odisha

• Sharavathy (2,000 MW) in Karnataka

• Bhivpuri (1,000 MW) and Bhavali (1,500 MW) in Maharashtra

• MP-30 (1,920 MW) in Madhya Pradesh

• Chitravathi (500 MW) in Andhra Pradesh

India’s Current Operational Hydro PSP Capacity

India currently has 3.5 GW of operational hydro Pumped Storage Project (PSP) capacity. With eight projects totaling 10 GW under construction and DPRs approved for an additional 3 GW, capacity is expected to rise sharply. Another 49 PSPs with a combined 66 GW are under survey and investigation, with DPRs likely to be finalized within two years. The sector has attracted increasing private sector interest, with self-identified PSP potential now exceeding 200 GW and continuing to grow.

Two projects totaling about 3 GW are expected to be commissioned in 2025, and total PSP capacity is projected to reach around 50 GW by 2032. PSPs are essential for balancing variable renewable energy, as they store surplus power during off-peak hours and supply electricity during peak demand, particularly in non-solar hours. With an operational life of over 70–80 years, hydro PSPs offer long-term investment opportunities in sustainable infrastructure.