The Press Information Bureau announced on 19 October 2026 that India is scaling up Pumped Storage Projects (PSPs), which act as "water batteries" to store renewable energy. The Central Electricity Authority has mapped a pathway to commission 100.81 GW of new projects by 2035-36, bringing total capacity to 105.56 GW. To accelerate this, the government has reduced project approval timelines from 90 to 50 days and provided financial incentives. These measures aim to support India's target of 500 GW of non-fossil fuel electricity capacity by 2030.
Key points
- Target: 105.56 GW cumulative PSP capacity by 2035-36
- Incentive: 100% ISTS charge waiver for 25 years for projects awarded by 30 June 2028
- Efficiency: Project report concurrence timeline reduced from 90 to 50 days
- Current Status: 7.43 GW operational capacity as of August 2026
- Exemption: Off-stream closed-loop schemes exempt from CEA concurrence
When it applies
- deadline for PSPs to be awarded for construction to receive ISTS charge waiver
- target for 500 GW of non-fossil fuel capacity
- envisaged commissioning of 100.81 GW of PSPs
- Gazette Notification revising capital expenditure limits
Who it affects
- Pumped Storage Projects
- off-stream closed-loop pumped storage schemes