India's Pumped Storage Hydropower Expansion for Clean Energy Transition

India is rapidly expanding its pumped storage hydropower (PSP) capacity to support its ambitious clean energy transition goals. The country has set a target of achieving 500 GW of non-fossil fuel capacity by 2030, having already crossed 300 GW of installed non-fossil fuel-based electricity generation capacity as of July 2026. During FY 2025–26, India added approximately 55.29 GW of non-fossil fuel capacity.

The Central Electricity Authority (CEA) projects a requirement of 73.93 GW of storage capacity by 2031–32, comprising 26.69 GW from Pumped Storage Projects and 47.24 GW from Battery Energy Storage Systems. PSPs serve as large-scale energy storage systems that store electricity by pumping water to an upper reservoir during surplus generation periods and releasing it through turbines during high demand periods, providing crucial long-duration storage and grid stability support.

Current Capacity and Development Pipeline

As of August 2026, India has 7.43 GW of operational PSP capacity across 10 projects with installed capacity above 25 MW. An additional 15.87 GW across 11 PSPs is under construction/implementation, while 10.40 GW across 8 projects has been concurred or appraised by CEA. The development pipeline includes three types of PSP configurations: on-stream (both reservoirs on rivers/streams), off-stream open-loop (one reservoir on watercourse), and off-stream closed-loop (neither reservoir on perennial watercourses).

National Potential and Regional Distribution

India has identified 320 pumped storage projects with a combined potential of 345.38 GW, including 62 on-stream projects (56.67 GW) and 258 off-stream projects (288.71 GW). The Western Region leads with 129.72 GW potential, primarily due to topographical features of the Western Ghats, with Maharashtra accounting for 67.36 GW and Gujarat for 33.36 GW. The Southern Region has 97.76 GW (led by Andhra Pradesh, Telangana, and Tamil Nadu), Eastern Region 53.41 GW (including 41.53 GW in Odisha), Northern Region 50.32 GW (led by Uttar Pradesh and Himachal Pradesh), and North Eastern Region 14.18 GW.

Projected Capacity Addition Timeline

The CEA has mapped a substantial capacity addition pathway through 2035–36, with projects totalling 100.81 GW envisaged for commissioning. The detailed year-wise projection shows: 2.68 GW addition in 2025–26 (7.425 GW cumulative), 2.92 GW in 2026–27 (10.345 GW), 1.6 GW in 2027–28 (11.945 GW), 6.35 GW in 2028–29 (18.295 GW), 13.5 GW in 2029–30 (31.795 GW), 21.19 GW in 2030–31 (52.985 GW), 8.8 GW in 2031–32 (61.785 GW), 14.59 GW in 2032–33 (76.375 GW), 11.88 GW in 2033–34 (88.255 GW), 5.7 GW in 2034–35 (93.955 GW), and 11.6 GW in 2035–36 (105.555 GW cumulative).

Global Context and Ranking

Globally, pumped storage hydropower is the most widely deployed form of large-scale energy storage, with 159.8 GW installed capacity at end-2025 according to IRENA. China leads with nearly 66 GW, followed by Japan (~22 GW) and the United States (~19 GW). India ranks fourth globally with 7.18 GW at end-2025, increasing to 7.43 GW by July 2026.

Government Policy Initiatives

The Government of India has implemented comprehensive measures to promote PSP development, including: dedicated PSP Development Guidelines notified in April 2023; budgetary support for enabling infrastructure like roads, bridges, and transmission lines; Tariff-Based Competitive Bidding Guidelines notified in February 2025; 100% ISTS charge waiver for 25 years for projects awarded by 30 June 2028; reduced DPR concurrence timelines from 90 to 50 days; streamlined environmental appraisal with B2 categorization for eligible projects; extended forest land survey provisions; integrated grid and transmission planning envisioning 100 GW PSP integration between 2025–26 and 2035–36; digital project monitoring through CEA's Jal Vidyut DPR portal; and revised capital expenditure limit of ₹3,000 crore requiring CEA concurrence, with off-stream closed-loop schemes exempted entirely.