India's energy future and the 100 gigawatt pumped storage target
India plans to unlock
100 gigawatts (GW) of hydro pumped storage capacity over the next two decades
as it races to stabilise a power system increasingly dominated by solar and
wind, according to a roadmap prepared by the Central Electricity Authority
(CEA). The “Roadmap to 100 GW of Hydro Pumped Storage Projects by 2035-36”
report prepared by CEA was released at a two-day Chintan Shivir organised by
the Ministry of Power at Parwanoo, Himachal Pradesh.The 14th Integrated Rating
and Ranking Report of power distribution utilities was also released at the
Chintan Shivir.Torrent Power Ahmadabad and Torrent Power Surat have topped the
ratings for FY2024-25.Uttar Gujarat Vij Company Ltd (UGVCL) has achieved the
Best Ratings among state-owned discoms.Deliberations during the two-day Shivir
focused on the draft Electricity Amendment Bill, 2026, to ensure financial
viability, economic competitiveness, and energy transition, as well as the
Draft Electricity Policy, 2026, to meet the vision of Viksit Bharat 2047.
Key Highlights of the Report
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India’s strategy to address rising energy storage demands: driven by an
increase in non-fossil fuel capacity to 500 GW by 2030 and 701 GW by 2035.
Target Capacity
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Short-term: 62 GW of total energy storage requirement by 2029-30.
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Medium-term: 161 GW by 2034-35, driven by rising renewable penetration.
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Long-term: commissioning 100 GW of PSPs by 2035-36.
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Site Potential: Over 120 potential pumped storage sites have been
identified with total potential exceeding 180 GW, offering flexibility for
phased development.
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Current Progress: Around 22 GW of pumped storage projects are already at
various stages of development, with another 50-60 GW shortlisted for rollout by
2032-37.
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Investment Needs: Cumulative investments are estimated at ₹5-6 lakh
crore (roughly $77 billion) to build the targeted 100 GW capacity, with
public-private partnerships and market-based procurement expected to improve
financing and project bankability.
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Early Anchors: States such as Andhra Pradesh, Maharashtra, Odisha,
Gujarat, and Tamil Nadu are set to be early anchors of pumped storage
expansion, using existing reservoirs and closed-loop systems to reduce social
and environmental impacts.
Pumped Storage Projects (PSPs)
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Definition: Pumped Storage Projects, also called as Pumped Hydro Storage
(PHS), are large-scale energy storage systems that use the gravitational
potential of water to store and generate electricity.
Types of PSPs
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On-stream pumped storage scheme: Both reservoirs are located on any
river/ stream/ nallah.
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Off-stream open loop pumped storage scheme: One reservoir is located on
a river/ stream/ nallah, and the other reservoir (off-stream reservoir) is not
located on any river/ perennial stream/ perennial nallah.
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Off-stream closed loop pumped storage scheme: None of the reservoirs is
located on any river/ perennial stream/ perennial nallah.
Need and Advantages of Pumped Storage Projects
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Integration with other renewable sources: Essential for ensuring the
smooth integration of the rapidly growing share of renewable energy sources—
particularly variable and intermittent solar and wind—into the national grid,
alongside emerging technologies such as Electric Vehicles (EVs).
Longer and more reliable duration of storage
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Globally, PSPs account for over 95% of installed energy storage
capacity, storing nearly 9,000 GWh of electricity, underscoring their proven
effectiveness as large-scale storage solutions.
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Capable of providing gigawatt-scale storage with long duration discharge
of up to about eight hours a day, and offer operational flexibility through
frequent start–stop operations and fast ramping capabilities.
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With a long life cycle of around 100 years (with periodic R&M of
electro-mechanical systems), PSPs remain a durable and sustainable asset.
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Eco-friendly: Being a clean and green technology with high domestic
content, they contribute to Atmanirbharta in the energy sector.
Significance of the Report
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The roadmap underscores how India’s Clean Energy Investment Drive at
Davos is designed to bridge the gap between variable renewable generation and
dependable electricity supply, a key step toward energy security, cost
efficiency, and climate goals.
¨ The strategy positions pumped storage as the backbone of grid-scale energy storage, critical for managing peak demand, ensuring round-the-clock power supply and supporting the country’s Net Zero transition.
¨ The report supports Clean Energy Goals as India aims for 500 GW non-fossil fuel capacity by 2030 and reduce reliance on fossil fuels.
