Adani Group, one of India’s leading conglomerates, is stepping up its commitment to green energy amid the country’s push towards achieving net-zero emissions. Known for its focus on solar and wind energy, Adani Group is now expanding into Pumped Storage Hydro (PSH) technology to generate clean electricity.
Focus on Pumped Storage Hydro (PSH)
The group aims to establish 5 gigawatts (GW) of PSH capacity over the next five years, with plans to eventually scale this up to 25 GW. This initiative will increase Adani Group’s total green energy capacity to 70 GW by 2030, up from the previous target of 45 GW.
Strategic Implementation
Initially, the group will set up PSH facilities across four states: Maharashtra, Andhra Pradesh, Tamil Nadu, and Telangana. The estimated investment required for these projects ranges between ₹25,000-27,500 crore, leveraging existing reservoirs and elevation facilities.
Pumped Storage Hydro (PSH) involves using two reservoirs positioned at different elevations. Electricity is generated as water moves between these reservoirs through turbines. During periods of surplus electricity, typically from solar and wind sources, water is pumped from the lower reservoir to the higher one to store energy. This technology ensures continuous electricity supply, unlike solar and wind alone, making it attractive to both government and private sectors.
Financial Preparations
Adani Group has already secured financial closure for commissioning 3.5 GW of PSH capacity, with preparations underway for the first 500 MW project in Andhra Pradesh, scheduled to be operational by FY27.
India’s focus on PSH is part of broader efforts to enhance clean energy capabilities, driven by the country’s status as the third-largest emitter of carbon dioxide globally. The government has approved several PSH projects across multiple states, reflecting a growing industry interest in this technology.
Industry Trends and Competition
Adani Group’s move into PSH follows similar initiatives by competitors like Tata Power, NTPC, and JSW, reflecting a significant capital expenditure (capex) commitment towards clean energy solutions.
Looking ahead, Southeast Asia is also expected to boost its PSH capacity significantly, driven by a shift away from fossil fuels. This expansion could attract substantial investments, signalling a broader regional transition towards sustainable energy sources.
An email query sent to Adani Group remained unanswered at the time of reporting.
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