Adani to Develop 2,250 MW Gandikota-2 Pumped Storage Project in Andhra Pradesh

Amaravati, May 2026 : Adani Hydro Energy Eleven Ltd. (AHE11L), a subsidiary of Adani Green Energy, has been entrusted with the development of the 2,250 MW Gandikota-2 Pumped Storage Project in YSR Kadapa district of Andhra Pradesh, marking a major expansion of the state’s clean energy infrastructure.

The Andhra Pradesh government approved the allocation of the project to AHE11L under the Andhra Pradesh Integrated Clean Energy Policy 2024, following clearance from the State Investment Promotion Board (SIPB), chaired by Chief Minister N. Chandrababu Naidu. Officials said the decision is expected to significantly enhance the state’s position as a leading hub for renewable energy and large-scale energy storage in India.

The Gandikota-2 Pumped Storage Project will be developed at the Lord Balaji Donthi Kona PSP Park in YSR Kadapa district. Once operational, it will become one of the largest pumped storage projects in the country and a key component of Andhra Pradesh’s long-term energy transition strategy.

According to an official release, the project is designed to strengthen grid stability and renewable energy integration by storing surplus solar and wind power during low-demand hours and releasing it during peak consumption periods. This mechanism is increasingly seen globally as essential for ensuring round-the-clock availability of clean energy in systems dominated by renewables.

The project is also expected to play a critical role in supporting Andhra Pradesh’s broader emerging ecosystem, which includes green hydrogen production, electric mobility, advanced manufacturing, and AI-driven data centres. Officials noted that large-scale energy storage facilities such as Gandikota-2 are vital for sustaining energy-intensive digital infrastructure and industrial growth.

India is witnessing a rapid expansion of pumped storage capacity as part of its push toward large-scale renewable integration. Government data indicates that Andhra Pradesh has emerged as one of the leading states in this segment, with several projects under various stages of development.

The Adani Group has been steadily expanding its footprint in the pumped storage sector across multiple states, including Andhra Pradesh, Maharashtra, and Uttar Pradesh, as part of its broader renewable energy and energy transition strategy. The Gandikota-2 project further consolidates the group’s position in the country’s growing clean energy storage market.

As part of the project approvals, the state government has sanctioned 29.20 million cubic metres (MCM) of water for one-time initial filling and 2.20 MCM annually to account for evaporation losses from the existing Gandikota reservoir. These allocations are subject to applicable regulatory guidelines.

The project will also benefit from incentives under the Andhra Pradesh Integrated Clean Energy Policy 2024, which aims to attract investments worth nearly ₹10 lakh crore and generate employment for approximately 7.5 lakh people across the clean energy value chain.

Officials reiterated that Andhra Pradesh continues to attract large-scale energy and infrastructure investments due to its stable policy environment, fast-track approval mechanisms, robust transmission planning, and integrated industrial development strategy.

The Gandikota-2 Pumped Storage Project is scheduled for completion within 72 months, and is expected to become a cornerstone in India’s evolving clean energy and storage ecosystem.