Adani Group to Invest in Pumped-Storage Hydropower Plant
The Adani Group plans to invest roughly $3 billion (₹25,000-27,500 crore) in its first pumped-storage hydropower (PSH) facility. This is a big investment that represents a strategic change toward boosting the company’s position in India’s growing clean energy sector. The proposed PSH plant will generate electricity by transferring water between two reservoirs at different heights, an effective method of energy storage and generation. The project is being overseen by Adani Green Energy Limited (AGEL), a company within the Adani Group. Its objective is to increase its capacity from 5GW to 25GW over the course of the next five years.
Expansion Plans and Green Energy Targets
The Adani Group revised its green energy objectives from 45GW to 50GW by 2030. Establishing facilities in Maharashtra, Andhra Pradesh, Tamil Nadu, and Telangana will be the primary goal of the pumped-storage hydropower (PSH) project’s first phase. These regions were chosen due to their existing infrastructure including the necessary reservoirs and the elevation variations that support PSH technology. The 3.5GW PSH capacity has reached financial closure, and new share issuance and debt will be used to finance the 5GW ambition. For a 500 MW PSH project in Andhra Pradesh, basic construction has already started, with completion expected by FY27.
Market Trends and Technological Shift
The Adani Group’s investment in pumped-storage hydropower (PSH) aligns with overall market trends and technological advancements in the clean energy industry. PSH technology, which creates electricity by transferring water between two reservoirs at different elevations, is gaining popularity as it provides a consistent energy source, unlike intermittent solar and wind power. India’s renewable energy market is fast growing, with the government sanctioning eight PSH projects worth ₹81,981 crore in January across five states. The Adani Group’s competitors, including Tata Power, NTPC, and JSW, are also entering the PSH area, indicating a significant industry trend.
