Why India is building pumped storage: ten operating projects, 7.43 GW, and a 345 GW potential
Background
This background sits behind India's drive to 500 GW of non-fossil fuel capacity by 2030, for which storage is the missing piece. India crossed 300 GW of non-fossil fuel capacity in July 2026 after adding about 55.29 GW in 2025-26. The Central Electricity Authority projects 73.93 GW of storage by 2031-32, of which 26.69 GW would come from pumped storage projects and 47.24 GW from battery storage. As of August 2026 India had 7.43 GW of pumped storage operating across ten projects above 25 MW, 15.87 GW under construction across eleven projects and 10.40 GW concurred across eight more. Surveys have identified 320 sites with a combined potential of 345.38 GW, of which the western region accounts for 129.72 GW, led by Maharashtra at 67.36 GW and Gujarat at 33.36 GW. At the end of 2025 global installed pumped hydro stood at about 159.8 GW, with China at about 66 GW, Japan about 22 GW and the United States about 19 GW, and India fourth at 7.18 GW. Policy support includes a full waiver of inter-state transmission charges for twenty-five years for projects awarded construction by 30 June 2028.
In plain words
PSP Pumped storage project — A hydro plant that pumps water to an upper reservoir when power is cheap and releases it to generate when demand is high.
ISTS Inter-State Transmission System — The national grid network whose charges are waived for eligible renewable and storage projects.