India is rapidly expanding its pumped storage capacity as part of efforts to strengthen grid stability and facilitate the integration of renewable energy into the power system, the Ministry of Power said on Monday.
According to the ministry, 11 Pumped Storage Projects (PSPs) with a combined installed capacity of 15,870 MW are currently under construction across the country. In addition, six PSPs with an aggregate capacity of 8,140 MW have been concurred with or appraised by the Central Electricity Authority (CEA) and are awaiting the start of construction.
The government has been taking a series of measures to accelerate the development of pumped storage projects, including streamlining statutory and environmental clearances and reducing the time required for project approvals.
Under revised CEA guidelines for the formulation and concurrence of Detailed Project Reports (DPRs), the time taken for concurrence has been reduced from 90 days to 50 days for all categories of PSPs. The ministry said clearance of inter-State aspects is also not required for such projects, helping further simplify the approval process.
"Pumped Storage Projects (PSPs) support the integration of renewable energy by storing surplus energy during off-peak periods and supplying power during peak demand," the Ministry of Power said.
Pumped storage plants function as large-scale energy storage systems. They store surplus electricity when demand is low and release it when demand rises. This makes them particularly important as India increases its dependence on variable renewable sources such as solar and wind power.
The ministry said PSPs provide long-duration energy storage, balancing power and several ancillary grid services. These include frequency regulation, voltage support and black start capability. Such services are expected to play a critical role in improving grid stability and reliability while enabling a higher share of renewable energy in the country's power mix.
The Ministry of Environment, Forest and Climate Change has also introduced several measures to facilitate the development of PSPs. These include allowing the appraisal of certain projects under the B2 category, issuing specific Terms of Reference for off-stream pumped storage projects and extending provisions related to surveys in forest areas to hydel and pumped storage projects.
The government has also increased the number of boreholes permitted for surveys and exploration in forest areas for developmental projects, including PSPs. Officials said the measures are intended to support project preparation and reduce delays during the early stages of development.
Also read: Trade ties: Piyush Goyal holds talks with UAE Economy Minister
To encourage greater private sector participation, the Ministry of Power notified guidelines for promoting pumped storage projects in April 2023. The government has also extended budgetary support for enabling infrastructure such as roads, bridges, railway sidings, ropeways, communication facilities and transmission lines connecting power houses to the nearest pooling point.
A tariff-based competitive bidding framework was notified in February 2025 to facilitate the procurement of storage capacity and stored energy from pumped storage plants through an open and transparent bidding process.
In another major incentive, the Central Electricity Regulatory Commission has provided a 100 per cent waiver of Inter-State Transmission System charges for PSPs for 25 years from the date of commercial operation. The waiver applies to projects for which construction work is awarded on or before June 30, 2028.
"The measures taken are aimed at encouraging greater private sector participation in the development of PSPs," the ministry said.
With renewable energy capacity continuing to expand, pumped storage is expected to become an increasingly important component of India's future power infrastructure and energy transition strategy.
Follow us
