India’s PSP Potential Touches 267 GW as Off-Stream Projects Gain Momentum

India has a very large potential for Pumped Storage Projects (PSPs) across both on-river and off-river schemes. At present, India’s pumped storage potential is estimated at around 267 GW, including 58 GW of on-stream PSPs and 209 GW of off-stream PSPs, a report from the Central Electricity Authority (CEA) said.

The Central Electricity Authority's (CEA )report notes that as of December 31, 2025, India has 10 operational PSPs with an installed capacity of 7 GW. 10 PSPs with a total capacity of 12 GW are under construction. Projects with Detailed Project Reports (DPRs) concurred by the Central Electricity Authority (CEA) but yet to be taken up for construction account for 9.6 GW. In the survey and investigation stage, 54 PSPs with a total installed capacity of 75 GW have been identified, including 52 closed-loop PSPs designed exclusively for storage rather than river-dependent generation.

India has several suitable locations where PSPs can be developed to store electricity on a large scale. States such as Andhra Pradesh, Maharashtra, Madhya Pradesh, Karnataka, Odisha, and Uttar Pradesh offer favourable sites for such projects. Developing PSPs in these regions will help improve grid reliability, provide stable power during peak hours, reduce renewable energy curtailment, and support India’s growing energy needs cleanly and sustainably.

The assessed pumped storage project potential in India has shown a sharp and sustained increase in recent years, rising from 97,565.6 MW as of December 31, 2022, to 124,290.6 MW as of December 31, 2023, further increasing to 183,330.6 MW as of December 31, 2024, and reaching 266,845.6 MW as of December 31, 2025. Earlier in January, L&T too secured a 3,000 MW Saidongar-1 PSP Order from Torrent in Maharashtra. 

This significant year-on-year growth largely reflects the increasing identification of off-stream closed-loop PSPs, which are predominantly self-identified by developers based on evolving technical, topographical, and commercial considerations. As a result, the total PSP potential remains dynamic, and the figures are updated by the CEA on a continuous basis as and when new proposals are formally submitted by developers.

PSPs in-operation & under-construction 

As of December 31, 2025, 10 pumped storage projects with an aggregate installed capacity of 7,175.6 MW are in operation in the country. Among the 10 projects listed by the CEA with a combined capacity of 7,175.6 MW, the Sardar Sarovar project (1,200 MW)—which is currently not operational—and the Pinnapuram PSP (1,680 MW) stand out for offering the highest capacities.

In the same duration, 10 pumped storage projects of 11,620 MW installed capacity are under construction in the country. Among the under-construction on-stream PSPs, the 2 GW Sharavathy on-stream project is being developed by Karnataka Power Corporation Limited (KPCL) in Karnataka. Other projects among the top-capacity developments include the 1,920 MW MP30 Gandhisagar PSP, being developed by Greenko, while the MP01 IREP Private Limited project is also under construction.

In the same period, six pumped storage projects 9,580 MW installed capacity have received concurrence from the CEA but have yet to be taken up for construction. Whereas, 54 pumped storage projects with an aggregate installed capacity of 74,940 MW are under survey and investigation in the country.

Investment Cost For PSPs

Based on projections by the Central Electricity Authority (CEA), a large programme of PSP installation has been planned up to 2035-36 to meet the growing need for long-duration energy storage. As a result, the total investment required for upcoming PSPs is estimated at around ₹ 5.8 lakh crore, calculated at an average cost of ₹ 6 crore per MW.

The investment requirement is spread over multiple years for each project, typically with 20% expenditure in the first year, 30% in the second year, 30% in the third year, and the remaining 20% in the fourth year. This phased expenditure pattern helps in managing cash flow, ensuring timely procurement, and maintaining steady progress in construction across different stages of the project cycle.