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Clearance Delays Hamper India’s Pumped Storage Expansion Plans

India’s push to scale up pumped storage projects (PSPs) is facing execution hurdles, even as the need for long-duration energy storage grows rapidly with rising solar and wind capacity. In its latest roadmap, the Central Electricity Authority (CEA) underlined that PSPs are no longer optional but a critical enabler for renewable integration, grid stability, and system flexibility.

With an estimated pumped storage potential of around 267 GW, the country has identified ample opportunity. However, the conversion of this potential into operational capacity has remained slow and uneven. The CEA noted that while several projects have received concurrence, many are yet to begin construction—indicating that the primary challenge lies in execution rather than identification.

Regulatory approvals remain one of the biggest bottlenecks. The roadmap highlights delays related to environmental, forest, and wildlife clearances as major obstacles. Even off-stream, closed-loop PSPs—designed to minimise river diversion—face prolonged approval timelines, particularly for survey and investigation activities in forest areas.

Land acquisition presents another hurdle. Although such projects typically involve lower displacement compared to conventional hydropower, acquiring land for reservoirs, access roads, and associated infrastructure requires extensive coordination with state authorities and local stakeholders. Rehabilitation and resettlement issues continue to slow progress in several cases.

The CEA also emphasized the capital-intensive nature of pumped storage development. With long gestation periods often exceeding four years, these projects rely on multiple revenue streams for viability. The absence of assured long-term offtake agreements and mature storage markets has complicated financial closure for developers.

To address this, tariff-based competitive bidding guidelines for procuring storage capacity and stored energy have been introduced. However, the roadmap acknowledges that broader implementation and market adoption will take time.

Transmission infrastructure is another critical concern. The CEA warned that evacuation systems must be developed in parallel with project construction. Delays in transmission planning could result in under-utilised assets and grid congestion, particularly as PSPs are typically located in remote or elevated terrains chosen for geographical suitability rather than proximity to demand centres.

Supply-side constraints may further slow progress. Scaling up to the targeted 100 GW by 2035–36 will require significant turbine and generator manufacturing capacity. While this aligns with the Atmanirbhar Bharat vision, the simultaneous construction of multiple large projects could strain domestic manufacturing capabilities and skilled manpower if not carefully synchronised.

Currently, development activity is concentrated in states such as Maharashtra, Andhra Pradesh, Gujarat, and Karnataka, where terrain and policy readiness are more favourable. In contrast, several states with high theoretical potential remain at preliminary survey stages, reflecting uneven administrative preparedness.

The CEA has cautioned that long-duration storage will be essential to integrate higher levels of renewable energy beyond 2030. Without timely and coordinated execution of pumped storage projects, grid reliability could face increasing stress in the years ahead.