The ₹7.36 trillion question: Can India store enough energy to keep the lights on?

New Delhi: India’s pipeline to build 122.77 gigawatts of pumping capacity through 87 projects may require an investment of Rs. ₹7.36 trillion, according to industry experts, as the government looks to add large-scale storage to support its rapidly expanding renewable energy capacity.

This pressure is significant as India strives to meet its 2030 target of 500 GW of non-fossil energy capacity while managing the variability of solar and wind generation. Pumped storage plants can absorb excess renewable energy during off-peak hours and release it when demand rises, providing longer storage and helping to maintain grid stability as the share of variable renewable energy grows.

According to data from the Central Electricity Authority, the country’s apex energy planning body, 15.87 GW of pumped storage plants are under construction as of August 2026, while another 10.4 GW have received CEA approval. An additional 96.5 GW of potential capacity is being explored and investigated. CEA has already come up with a plan to install 100 GW of PSP capacity by 2035-36.

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The need for storage has become more pressing as India has not been able to fully utilize its intermittent solar and wind resources. Inadequate storage can compromise grid stability when generation drops due to cloud cover, rain or lower wind speeds, while sudden changes in demand can also affect the grid frequency, which must remain between 49.90 and 50.05 Hertz (Hz).

In its road map for pumping capacity, CEA estimated the average cost of ₹6 crore per megawatt, which represents a development cost of 122.77 GW approx ₹7.36 trillion, according to experts. India currently has 7.42 GW of pumped storage capacity, including the 1,000 MW Tehri project commissioned in 2025. CEA estimates that the country has a potential for pumped storage projects of 345.38 GW.

The investment push comes against a backdrop of 43GW of solar power capacity yet to find buyers, with power distribution companies carrying out emergency sales of green energy on exchanges at prices well below their acquisition costs.

Pumped storage projects have higher initial costs than battery energy storage systems, approx ₹6 crore per MW compared to approx ₹2 crore per MW for BESS and its construction may take up to five years. But PSPs have a lifespan of around 100 years, which is about 10 times longer than BESS. They are also generally designed for longer discharge durations of more than six hours compared to four hours for current BESS projects, making them suitable for meeting peak demand and compensating for grid variability.

Experts say the CEA’s goal, while ambitious, is achievable.

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“Transfer reservoir projects require four to five years to build. Basically, the PSP requires a combination of two reservoirs that should have a difference in height of at least 150-200 meters. India has also developed projects with a difference of 500 meters between the reservoirs. The current targets are ambitious but not unachievable. All that is said is that some projects will have an impact on forests or geological issues,” he said. hydrologist and adjunct professor at IIT Roorkee.

Singh, former managing director of NTPC hydro, said there are several places with strong potential, including the Western Ghats in Maharashtra and Karnataka and the Eastern Ghats in Andhra Pradesh and parts of Odisha.

Other commissioned PSP projects include Tata Power, with 150 MW, Greenko, Mahagenco Ltd., with 250 MW, and Tamil Nadu Generation and Distribution Corporation Ltd., with 400 MW, among others.

Developers of projects currently under construction include Adani Group (3 GW in Andhra Pradesh and Maharashtra), Tata Power, with 1 GW in Maharashtra and JSW Energy, with 1.5 GW in Maharashtra.

The focus on pumped storage comes as the rapid growth of variable renewables such as solar and wind increases the need for flexibility, energy balancing and long-term storage in the grid. PSPs can provide high-capacity storage, network inertia, and load balancing support as more renewable capacity is added.

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This is particularly important for India’s integrated synchronous national grid, where an outage in one region can potentially affect the wider system. The grid has faced warnings of sudden drops in solar generation that have contributed to instances of frequency drops.

According to CEA’s resource adequacy studies for all states by 2034-35, integration of higher volumes of renewable energy after 2030 will require long-term storage of around six hours.