Andhra govt clears 2,250 MW Adani pumped storage project in Kadapa

The Andhra Pradesh government has approved allocation of a 2,250 MW pumped storage project in YSR Kadapa district to Adani Hydro Energy Eleven Ltd as part of efforts to strengthen the state's clean energy and storage infrastructure.

The state government has been pushing large-scale renewable energy, pumped storage and green industrial projects under the Integrated Clean Energy Policy 2024 to position Andhra Pradesh as a major clean energy investment destination.

"The Andhra Pradesh government has approved allocation of the 2,250 MW Gandikota-2 Pumped Storage Project (PSP) in YSR Kadapa district to Adani Hydro Energy Eleven Ltd under AP Integrated Clean Energy Policy 2024," said a government order issued by the Energy Department on Tuesday.

The proposal was cleared by the State Investment Promotion Board (SIPB) chaired by Chief Minister N Chandrababu Naidu, following recommendations of the State Investment Promotion Committee, according to the order.

The project will come up at the Lord Balaji Donthi Kona PSP Park in Kadapa district and is expected to be among the country's largest pumped storage facilities.

Pumped storage projects play a key role in balancing renewable energy by storing excess solar and wind power during low-demand periods and supplying electricity during peak consumption hours.

The government has also approved allocation of 29.2 MCM of water for one-time initial filling and 2.2 MCM annually towards evaporation losses from the existing Gandikota reservoir, subject to prevailing guidelines.

The project will be eligible for incentives under the Andhra Pradesh Integrated Clean Energy Policy 2024, which aims to attract investments worth nearly Rs 10 lakh crore and generate around 7.5 lakh jobs across the clean energy sector.

Andhra Pradesh Transmission Corporation Limited (APTRANSCO) will facilitate the evacuation of power from the project to the nearest central transmission utility substations, while the company will develop the required evacuation infrastructure, the order said.

The project is scheduled for completion within 72 months, and power generated from the facility can be supplied within or outside the state, according to the government order.