India plans ₹5.8 trn investment in 100 Gw hydro pumped storage projects

India plans ₹5.8 lakh crore investment to build 100 GW of hydro pumped storage projects by 2035-36 to support large-scale renewable energy expansion

The government has chalked out a detailed plan to set up 100 Gigawatt (Gw) hydro Pumped Storage Projects (PSPs) in the country with an investment of ₹5.81 trillion over the next decade through 2035-36. This is part of a larger plan to provide grid support for the rapid expansion of clean energy capacity. 

“The total investment required for upcoming PSPs is estimated at around ₹5.8 trillion, calculated at an average cost of ₹6 crore per Megawatt. The investment requirement is spread over multiple years for each project,” the Central Electricity Authority said in a report released on Friday. 

The study pegs this investment spread at 20 per cent in the first year, 30 per cent in each of the second and third years, and the remaining 20 per cent in the fourth year.