The Central Electricity Authority (CEA) has released a report titled “Roadmap to 100 GW of Hydro Pumped Storage Projects [PSPs] by 2035-36”, outlining a strategic pathway for scaling up pumped storage capacity over the next decade. The report reviews the current status of PSP development in India and identifies the policy, regulatory, institutional and infrastructure interventions required to enable the timely and financially viable addition of 100 GW of capacity.
This road map comes at a time when India’s power sector is undergoing a rapid transition driven by the large-scale expansion of renewable energy. Non-fossil-fuel-based installed capacity is projected to reach 500 GW by 2030, 701 GW by 2035 and 2,187 GW by 2047. As renewable penetration increases, the power system will require significantly higher levels of flexibility, balancing power and long-duration energy storage to ensure reliable and secure grid operations. Moreover, the resource adequacy studies conducted by the CEA for all states indicate that all-India storage requirements will rise sharply, from 62 GW by 2029-30 to 161 GW by 2034-35, and further to 476 GW by 2046-47.
In this context, PSPs emerge as a critical, large-scale solution for meeting future storage needs at a reasonable cost. Beyond energy storage, PSPs also provide essential grid services such as frequency regulation, voltage support and inertia, thereby strengthening overall system reliability and resilience.
The roadmap
Under the road map, the CEA envisages the commissioning of PSPs with an aggregate capacity of 100,810 MW by 2035-36, including 11,620 MW of projects currently under construction.
Investment requirement
The development of upcoming PSPs will require a substantial investment of approximately Rs 5,813.16 billion, based on an average cost of Rs 0.06 billion per MW. This investment is spread over a four-year construction period: 20 per cent in the first year, 30 per cent in both the second and third years, and the remaining 20 per cent in the final year. Such phased spending helps manage cash flows, supports timely procurement and ensures steady progress across different stages of project execution.
Requirement of turbine and generators
The scale of PSP development will also drive a significant increase in demand for turbines and generators. For projects already under construction, turbine-generator packages have been placed. Overall, a consolidated assessment across all project categories covers a total of 321 units. This includes 117 units (30,000 MW) already in operation, 175 units (45,000 MW) under survey and investigation (S&I) and 29 units (6,580 MW) for projects that have received CEA concurrence but are yet to commence construction. The unit sizes range from 100 MW to 400 MW, except for an 80 MW unit at the Indira Sagar‑Omkareshwar PSP.
On the construction front, more than 15 civil contractors are currently engaged, or have previously been engaged, in hydroelectric and PSP projects nationwide. To encourage competition and strengthen domestic manufacturing capacity, qualification requirements were relaxed on January 8, 2026. Under the revised norms, manufacturers with proven experience in executing vertical centrifugal pumps of specified capacity and successful model testing of reversible fixed-speed Francis pump turbines can participate, supporting timely project execution and domestic capability building.
Transmission system for evacuation of power from PSPs
Transmission infrastructure for 35.6 GW of pumped storage capacity has already been planned for commissioning by 2031-32, as incorporated in the National Electricity Plan (Transmission) released in October 2024. Additional transmission requirements are being firmed up based on inputs from developers through pre-detailed project report (DPR) and DPR submissions. Once finalised, PSP developers must seek connectivity from Central Transmission Utility of India Limited or the respective state transmission utilities.
As of November 30, 2025, transmission systems have been finalised for 73 projects, covering a combined capacity of 100,810 MW, based on the National Electricity Plan and project-level data submitted by developers.
Further policy recommendations and the way forward
To address the challenges faced by developers in PSP development, the CEA has proposed a set of policy interventions.
A key recommendation is to allow developers to carry out compensatory afforestation on degraded forest land at twice the area of forest diverted, rather than limiting developers to non-forest land. This approach could be supported by creating a national-level land bank with GIS-based mapping, a centralised inventory of degraded land, and robust monitoring mechanisms. Given their relatively low environ-mental footprint, PSPs may be permitted within eco-sensitive zones and within a 10 km aerial distance from protected areas where eco-sensitive zones are not notified. A differentiated regulatory approach for renewable energy projects could also relax restrictive provisions applicable to the Western Ghats. For off-stream PSPs, exemptions from catchment area treatment and soil and moisture conservation plans may be considered, as sedimentation and soil-related concerns are already addressed under existing watershed development measures.
Further procedural simplifications could ease project implementation. Increasing the permissible document upload size on the PARIVESH 2.0 portal would allow the submission of complete project documentation. Draft resettlement and rehabilitation plans could be accepted at the Forest Clearance Stage II (FC-II) phase, with final approval mandated before construction and supported through periodic compliance reporting. Similarly, FC-II may be granted based on the identification of non-forest land, with transfer or mutation treated as a post-clearance compliance condition. Submission of an approved mining plan could be deferred at FC-II, subject to a developer undertaking to submit the plan before actual mining begins. Forest diversion proposals for linear and non-linear components could be processed independently, enabling the early development of essential infrastructure such as roads and construction power, with full clearance required only for main construction activities. Construction on non-forest land should be permitted without delay, even when projects involve both forest and non-forest land. For tunnels deeper than 50 metres where the forest land above remains unaffected, that land should not be counted as diverted, and net present value charges should apply only to areas with surface disturbance, such as tunnel portals, access roads and construction sites.
Additionally, early coordination among the Ministry of Environment, Forest and Climate Change, the National Tiger Conservation Authority and the National Board for Wildlife should be ensured at the start of the approval process to identify any overlap with protected areas or wildlife corridors. In parallel, a centralised online system for the submission and processing
of Forest Rights Act certificates, along with the proactive resolution of gram sabha rights by state governments at the project allocation stage, would prevent delays later. Off-stream PSPs may also be considered for inclusion under the White category, recognising their minimal environmental impact and enabling a simpler and faster environmental and forest clearance process.
From a financial perspective, while the cost of battery energy storage systems (BESSs) has been declining, the capital cost of PSPs remains relatively high at around Rs 0.05 billion-Rs 0.06 billion per MW, affecting their competitiveness. Targeted financial support, particularly in the form of viability gap funding (VGF), and reducing the cost of pumping power would significantly improve the economics of PSPs and make them more attractive for discoms and other consumers under competitive tariff structures. The government has already extended VGF to BESSs, which has helped accelerate adoption and reduce costs. Extending similar support to PSPs would be a logical next step in India’s journey towards long-term energy security.
Overall, the CEA’s road map firmly positions pumped storage as a cornerstone of India’s future power system. As renewable capacity expands rapidly, the need for reliable, long-duration storage and grid-balancing resources will intensify, making PSPs indispensable for ensuring system stability and resource adequacy.
While recent policy, regulatory and environmental reforms have improved the development ecosystem, timely execution will be critical to achieving the targeted 100 GW by 2035-36. Faster clearances, coordinated transmission planning and targeted financial support will be key to translating intent into capacity on the ground.
