India's pumped storage capacity to cross 100 GW by 2036
- IBEF
- January 29, 2026
India is preparing to accelerate the development of pumped storage hydro power above 100 GW by FY36, which is a key component of its energy storage and clean transition plan. The plan proposed by the Central Electricity Authority (CEA) indicates that achieving this target will require large capacity additions every year to fulfil the rising demand for long-duration storage to address the variability of solar and wind energy. Pumped storage schemes are designed to utilize surplus electricity during off-peak hours to pump water from a lower reservoir to an upper reservoir, and then to generate electricity during peak hours to enhance the reliability of the power system. The estimated cost of developing 100 GW of capacity is Rs. 5.8 lakh crore (US$ 64.4 billion), at an average cost of Rs. 6 crore (US$ 667,000) per MW of installed capacity.
This development is in line with India’s overall plan to enhance non-fossil fuel-based power and enhance energy security, as the demand for storage is expected to escalate sharply. The plan indicates that by FY30 and then by FY35, the cumulative demand for storage may reach several tens of gigawatts, making pumped storage projects (PSPs) an essential component of the clean energy mix. The development of pumped storage projects (PSPs) in various states will help to provide round-the-clock power and reduce dependence on fossil-based backup power, bringing India closer to its climate and energy targets.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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