AP Govt Clears 2,250 MW Adani Pumped Storage Project in Kadapa

The mega energy storage project, approved under the Andhra Pradesh Integrated Clean Energy Policy 2024, is expected to emerge as one of the country’s largest pumped storage facilities and strengthen the State’s renewable energy ecosystem.

The proposal received clearance from the State Investment Promotion Board (SIPB) chaired by Chief Minister N. Chandrababu Naidu.

The Gandikota-2 PSP will be developed at the Lord Balaji Donthi Kona PSP Park in YSR Kadapa district and is scheduled for completion within 72 months.

Officials said the project would improve Andhra Pradesh’s renewable energy balancing and storage capacity while supporting sectors such as green hydrogen, electric mobility, advanced manufacturing and AI-driven data centres.

Pumped storage projects help store surplus solar and wind power generated during non-peak hours and release it during peak demand periods, ensuring uninterrupted clean energy supply.

The state government has also sanctioned allocation of 29.20 million cubic metres (MCM) of water for initial filling of the project and 2.20 MCM annually towards evaporation losses from the Gandikota reservoir.

Officials said the project would be eligible for incentives under the Integrated Clean Energy Policy 2024, which aims to attract investments worth nearly `10 lakh crore and generate employment for around 7.5 lakh people.