The Andhra Pradesh government has issued an order allocating the 2,250 MW Gandikota-2 Pumped Storage Project in YSR Kadapa district to Adani Hydro Energy Eleven Ltd (AHE11L). According to reports from Business Standard, the approval was accorded following clearance by the State Investment Promotion Board (SIPB), chaired by Chief Minister N Chandrababu Naidu. The project will be developed at the Lord Balaji Donthi Kona PSP Park in YSR Kadapa district under the Andhra Pradesh Integrated Clean Energy Policy 2024. As per Government of India data, Andhra Pradesh has emerged as one of the leading destinations for pumped storage development with a significant pipeline of projects under implementation.
The Gandikota-2 PSP is expected to become one of the largest pumped storage projects in the country and a key pillar of Andhra Pradesh's next-generation power infrastructure strategy. As reported by Business Standard, the project will significantly strengthen Andhra Pradesh's renewable energy balancing and storage capabilities while supporting the state's rapidly growing ecosystem of green hydrogen, advanced manufacturing, electric mobility, and AI-driven data centres. Globally, pumped storage projects are increasingly viewed as the backbone of renewable-heavy power systems, enabling stable, round-the-clock clean energy by storing surplus solar and wind power during off-peak hours and releasing it during peak demand periods. India is witnessing rapid expansion in pumped storage capacity as the country accelerates its transition towards large-scale renewable energy integration.
The project will be eligible for incentives under the Andhra Pradesh Integrated Clean Energy Policy 2024, which targets investments worth nearly ₹10 trillion and aims to generate employment for approximately 7.5 lakh people across the clean energy value chain. According to reports from Business Standard, as part of the approvals, the government has sanctioned allocation of 29.20 MCM of water for one-time initial filling and 2.20 MCM annually towards evaporation losses from the existing Gandikota reservoir, subject to prevailing guidelines.
The Gandikota-2 PSP is scheduled to be completed within 72 months. According to Business Standard, the project will be developed by the Adhani Group under the Andhra Pradesh Integrated Clean Energy Policy 2024, further strengthening the State's position as India's emerging clean energy and energy storage hub. The approval reinforces Andhra Pradesh's strategic position in India's renewable energy transition, with the state emerging as one of the leading destinations for pumped storage development. The Adani Group has also been expanding its national pumped storage portfolio as part of its broader renewable energy and energy transition strategy, with projects across multiple states including Andhra Pradesh, Maharashtra, and Uttar Pradesh.
