Adani Green to Develop 2,250 MW Gandikota-2 Pumped Storage Project in AP

Why It Matters

The project provides critical grid‑scale storage, reducing renewable curtailment and enhancing the economics of solar and wind investments in India’s fastest‑growing clean‑energy market.

Key Takeaways

• Adani Green awarded 2,250 MW pumped storage project in Andhra Pradesh.
• Project to be built by Adani Hydro Energy Eleven Ltd (AHE11L).
• Completion targeted within 72 months, boosting state’s storage capacity.
• Supports Andhra Pradesh’s green hydrogen, EV, AI data centre ecosystem.
• Positions India’s pumped storage as backbone for renewable grid.

Pulse Analysis

Pumped‑storage hydroelectric plants have become the linchpin of modern renewable grids, allowing excess solar and wind generation to be captured and released when demand peaks. Globally, utilities are adding gigawatts of storage to smooth intermittency, and India is no exception. The Andhra Pradesh Integrated Clean Energy Policy 2024 earmarks the state as a national hub for such assets, leveraging its topography and abundant renewable resources. By fostering large‑scale storage, the policy aims to accelerate the country’s target of 500 GW renewable capacity by 2030. This capacity boost also helps meet the nation’s climate‑net‑zero pledge.

The 2,250 MW Gandikota‑2 pumped‑storage project, awarded to Adani Hydro Energy Eleven Ltd, will be built at the Lord Balaji Donthi Kona site in YSR Kadapa district. With a 72‑month construction horizon, the facility will deliver roughly 2.25 GW of dispatchable power, effectively acting as a giant battery for the region’s solar and wind farms. Its integration is expected to reinforce Andhra Pradesh’s burgeoning green‑hydrogen production, electric‑mobility corridors, and AI‑driven data‑centre clusters, providing reliable baseload while reducing curtailment of renewable output. The plant will also support grid frequency regulation services.

From an investment perspective, the Gandikota‑2 venture underscores the growing appetite for large‑scale energy‑storage assets in India’s power market. By de‑risking renewable curtailment, pumped storage enhances the economics of solar and wind projects, attracting both domestic and foreign capital. Moreover, the project aligns with the government’s push for carbon‑neutral industrial zones, positioning Andhra Pradesh as a testbed for integrated clean‑energy ecosystems. As the pipeline of similar facilities expands, developers like Adani are likely to capture a dominant share of the emerging storage market, reshaping grid dynamics nationwide. Such projects are expected to catalyze ancillary industries, from turbine manufacturing to digital monitoring platforms.