HyderabadThe Andhra Pradesh government has approved the construction of the 2,250 MW Gandikota-2 storage project in YSR Kadapa district by Adani Group’s Adani Hydro Energy Eleven Ltd (AHE11L) under the Andhra Pradesh Integrated Clean Energy Policy 2024, an official statement said on Wednesday.
The statement said the approval came after approval by the State Investment Promotion Board (SIPB), headed by Chief Minister N Chandrababu Naidu, at its last meeting.
“The project is expected to become one of the largest pumped storage projects in the country and a key pillar of Andhra Pradesh’s next generation energy infrastructure strategy,” she added.
The Gandikota-2 Pumped Storage Project (PSP) will be set up at Lord Balaji Donthi Kona PSP Park in the district. The project is seen as a critical enabler for India’s future energy economy and to support energy-intensive digital infrastructure such as large-scale data centres.
As part of the approvals, the state government agreed to allocate 29.20 million cubic meters of water for one-time primary filling and 2.20 million cubic meters per annum to cover evaporation losses from the existing Gandikota reservoir, as per prevailing guidelines.
The project will also be eligible for incentives under the Andhra Pradesh Integrated Clean Energy Policy 2024, targeting investments worth approximately $The Rs 10,000 crore aims to create employment opportunities for around 7.5 lakh people across the clean energy value chain, the statement said. The Gandikota-2 PSP project is scheduled to be completed within 72 months, she added.
According to officials, pumped storage projects globally are increasingly viewed as the backbone of heavy-duty renewable energy systems, enabling stable, round-the-clock clean energy by storing surplus solar and wind power outside peak hours and releasing it during periods of peak demand.
The Adani Group is also expanding its national pumped storage portfolio as part of its broader renewable energy and energy transition strategy, with projects in multiple states, including Andhra Pradesh, Maharashtra and Uttar Pradesh.
“Andhra Pradesh has already emerged as a prime destination for Adani Group’s investments in clean energy, including renewable energy storage and infrastructure projects,” the statement added.
