India’s accelerating build-out of variable renewable energy—notably solar and wind—is driving a sharp rise in demand for grid flexibility, balancing capacity and long-duration storage, according to a roadmap on pumped storage projects published by the Central Electricity Authority (CEA).
The document states that pumped storage projects (PSPs) are no longer optional. They are described as “a critical enabler, offering clean, large-scale energy storage solutions that support renewable integration, provide grid inertia, and enhance overall system stability”.
Yet, despite an estimated pumped storage potential of around 267GW, progress in translating this into commissioned capacity has been uneven and slow.
What does the CEA roadmap suggest?
“Several pumped storage projects concurred by the Central Electricity Authority are yet to be taken up for construction,” the roadmap notes, highlighting that the bottleneck is not project identification, but execution.
One of the most frequently cited obstacles is regulatory clearance. The roadmap explicitly flags “issues related with environmental, forest and wildlife clearances” as a major impediment to timely development.
Even off-stream closed-loop pumped storage projects, which are designed to avoid river diversion, face prolonged approval timelines. The document points out that “survey and investigation activities in forest areas and enhancement of number of drill holes require approvals that often delay project preparation”.
The CEA also underlines that while policy initiatives exist, “faster statutory clearances compared to conventional hydropower projects are still not being realised uniformly,” especially at the state level.
Land remains another sensitive bottleneck
Land remains another sensitive bottleneck. The roadmap refers to the application of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, noting that “rehabilitation and resettlement issues continue to affect the pace of pumped storage development”.
Although off-stream PSPs generally involve lower displacement, the document states that “land acquisition for reservoirs, approach roads and enabling infrastructure still requires extensive coordination with state authorities and local stakeholders”.
The roadmap repeatedly stresses the capital-intensive nature of PSPs. “The development of pumped storage projects is highly capital intensive and involves long gestation periods,” it mentions, adding that project timelines typically extend beyond four years.
Unlike conventional generation assets, pumped storage depends on multiple revenue streams. The CEA notes that “lack of assured offtake and long-term visibility of revenue streams impacts financial closure of projects,” particularly in the absence of mature storage markets.
To address this, the document highlights the introduction of “tariff-based competitive bidding guidelines for procurement of storage capacity and stored energy from pumped storage plants,” while acknowledging that implementation and market adoption will take time.
Transmission planning is flagged as another critical bottleneck. The roadmap devotes an entire chapter to the “transmission system for evacuation of power from pumped storage projects,” underlining that evacuation infrastructure must be developed in parallel with project construction.
It cautions that “delay in transmission planning may result in under-utilisation of pumped storage assets and congestion in the grid,” especially as PSPs are often located in remote or elevated regions chosen for topography rather than proximity to demand centres.
The roadmap also points to potential supply-side bottlenecks. It highlights the “requirement of turbine and generator manufacturing capacity” to meet the planned scale-up to 100 GW by 2035–36.
While PSPs align with the vision of Atmanirbhar Bharat, the document cautions that “simultaneous construction of multiple large projects could strain domestic manufacturing and skilled manpower availability” if capacity planning is not synchronised.
The roadmap clearly shows that progress is concentrated in a few states. Maharashtra, Andhra Pradesh, Gujarat and Karnataka are described as having “projects under various stages of development,” supported by favourable terrain and policy readiness.
In contrast, several states with large theoretical potential remain largely at the survey and investigation stage, reflecting “divergence in state-level preparedness and administrative facilitation”.
The CEA is unambiguous about the consequences. “Long-duration storage will be required for integrating higher quantum of renewable energy beyond 2030,” the roadmap states, warning that without pumped storage, grid reliability will come under stress.
It adds, “Without pumped storage projects, full decarbonisation of the electricity sector will not be achievable at reasonable costs,” underlining the strategic importance of resolving these bottlenecks quickly.
The document concludes with a clear signal: “Timely and viable development of pumped storage projects is necessary to strengthen India’s clean, secure and sustainable energy future.”
The ambition is defined. The sites are identified. The technology is proven. What remains is the removal of bottlenecks that continue to slow one of India’s most critical clean-energy enablers.