Adani Green Energy has received a letter of award from the Uttar Pradesh Power Corporation (UPPCL) for a 1,250 MW pumped hydro storage project (PSP). The Panaura PSP will be in the Sonbhadra district, with a minimum commitment of 40 years. The project is expected to be completed within the next six years.

Expanding its portfolio beyond solar, wind, and hybrid projects, Adani Green Energy is now venturing into energy storage solutions. The company has plans to add over 5 GW of hydro PSP capacity by 2030. Currently, it is working on several PSPs, including a 500 MW project at the Chitravathi River in Andhra Pradesh, a 1,500 MW project at Tarali in Maharashtra, and a 1,800 MW project at Gandikota in Andhra Pradesh.

The Ministry of Power recently introduced tariff-based competitive bidding guidelines to procure stored energy from existing, under-construction, or new PSPs. According to the National Electricity Plan 2023, India will require approximately 74 GW/411 GWh of energy storage systems by 2031-32. This includes 27 GW/175 GWh from PSPs and 47 GW/236 GWh from battery energy storage systems.

Additionally, the Ministry has revised the budgetary support provisions for hydroelectric and PSP projects, allocating a total of ₹124.6 billion (~$1.42 billion). This support will aid projects with a cumulative hydroelectric capacity of 31 GW, including 15 GW of PSP capacity, between the financial years 2024-25 and 2031-32.

The budgetary support is capped at ₹10 million (~$114,428)/MW for projects up to 200 MW and ₹2 billion (~$22.88 million) plus ₹7.5 million (~$85,820)/MW for projects exceeding 200 MW, with a potential increase to ₹15 million (~$171,640)/MW for exceptional cases.

This program applies to all hydropower projects with capacities exceeding 25 MW, including those in the private sector awarded through a transparent bidding process. It also covers all PSPs, including captive and merchant PSPs, and projects with letters of award for their first major package issued by June 2028.