AP Clears Adani’s 2,250 MW Mega Energy Storage Project in Kadapa

In a major push towards strengthening its clean energy infrastructure , the Andhra Pradesh government has approved a massive 2,250 MW pumped storage project in YSR Kadapa district , further accelerating the state’s ambitions of becoming a leading hub for renewable energy investments in India. The project has been allotted to Adani Hydro Energy Eleven Ltd , a subsidiary of Adani Group, under the state’s ambitious Integrated Clean Energy Policy-2024 .

The proposed Gandikota-2 Pumped Storage Project (PSP) will come up at the Lord Balaji Donthi Kona PSP Park in Kadapa district and is expected to emerge as one of the largest pumped hydro energy storage facilities in the country. The proposal received final approval during a meeting of the State Investment Promotion Board (SIPB) chaired by Andhra Pradesh Chief Minister N. Chandrababu Naidu.

The project is part of the state government’s broader strategy to attract large-scale investments in renewable energy, energy storage systems, green industries and power infrastructure . Through the clean energy policy, the state aims to attract nearly ₹10 lakh crore worth of investments and generate around 7.5 lakh employment opportunities in the coming years.

Pumped storage projects are increasingly becoming critical for India’s renewable energy transition. These projects work by using excess electricity generated from solar and wind power during low-demand periods to pump water to an upper reservoir. During peak demand hours, the stored water is released to generate hydroelectricity, helping maintain grid stability and ensuring uninterrupted power supply.

According to government orders, the project has been permitted to utilise 29.2 million cubic metres (MCM) of water from the Gandikota reservoir during the initial phase. Additionally, 2.2 MCM of water annually has been approved to offset evaporation losses, subject to regulatory guidelines.

The Andhra Pradesh government has directed the company to complete the project within 72 months . The power generated from the facility can be supplied both within the state and outside Andhra Pradesh. Andhra Pradesh Transmission Corporation Limited will facilitate connectivity to nearby substations, while the developer will build the required transmission infrastructure independently.

Officials believe the project will significantly strengthen Andhra Pradesh’s position in India’s rapidly expanding green energy ecosystem .