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India’s Pumped Storage Capacity Likely to Exceed 100 GW by FY36: CEA

India’s installed capacity of pumped storage projects (PSPs) is projected to cross 100 GW by 2035–36, with average annual additions of around 9 GW, according to the Central Electricity Authority (CEA).

In a report outlining the national roadmap for pumped storage development through FY36, the CEA estimated that upcoming PSPs would require investments of approximately Rs 5.8 lakh crore, based on an average capital cost of Rs 6 crore per MW.

The power sector planning body noted that pumped storage projects involve substantial upfront expenditure due to the scale of civil construction, electro-mechanical systems, and associated infrastructure required for their development.

Based on projected demand, PSP installations have been planned through FY36 to address India’s growing requirement for long-duration energy storage, particularly as renewable energy penetration increases.

The CEA highlighted that investment outlays for PSPs are typically spread across multiple years. Project expenditure is generally phased with 20% in the first year, 30?ch in the second and third years, and the remaining 20% in the fourth year, a structure that supports cash-flow management and timely procurement.

However, the report pointed out that the emergence of off-stream closed-loop pumped storage projects, which have a gestation period of about four years, could accelerate commissioning timelines in the later years of the planning horizon.

India has set ambitious clean energy targets, aiming to achieve 500 GW of non-fossil fuel capacity by 2030, 701 GW by 2035, and 2,187 GW by 2047, as outlined in national generation planning studies.

Resource adequacy assessments conducted by the CEA for all states up to 2034–35 indicate that large-scale, long-duration storage solutions will be essential for integrating higher volumes of renewable energy beyond 2030.

According to the CEA, pumped storage projects offer a cost-effective and comprehensive solution for meeting future storage needs, while also enhancing grid stability by providing services such as frequency regulation and voltage support.