The Andhra Pradesh government has approved the development of the 2,250 MW Gandikota-2 Pumped Storage Project (PSP) in YSR Kadapa district, marking another major step in the state’s clean energy and power storage expansion plans. The project has been allocated to Adani Hydro Energy Eleven Ltd. (AHE11L) under the Andhra Pradesh Integrated Clean Energy Policy 2024.
Publicly available reports indicate that the proposal received clearance from the State Investment Promotion Board (SIPB) chaired by Chief Minister N. Chandrababu Naidu. The pumped storage facility is planned within the Lord Balaji Donthi Kona PSP Park and is expected to become one of the country’s large-scale energy storage projects.
Pumped storage projects are considered important for renewable energy integration as they help store excess electricity generated during low-demand periods and supply power during peak consumption hours. Such facilities support grid balancing and improve reliability as solar and wind energy capacity expands.
According to reports and government approvals referenced in media coverage, the Gandikota-2 project is scheduled for completion within 72 months. The state government has also approved water allocation requirements linked to the project, subject to applicable guidelines and regulatory provisions.
The approval aligns with Andhra Pradesh’s broader strategy to attract investments in renewable energy, energy storage, and power infrastructure under its clean energy policy framework. Industry observers view pumped storage systems as a growing component of India’s evolving energy landscape, particularly as demand for grid-scale storage increases alongside renewable energy deployment.
