#pumpedstorage

The Central Electricity Authority’s Pumped Storage Development Status Report as on April 30, 2026 shows the scale of India’s storage opportunity.

India’s total identified pumped storage potential stands at 2,90,196 MW.

This potential is spread across 264 identified projects.

The number makes India one of the world’s largest undeveloped pumped storage markets.

Project classification

The identified pipeline includes both on-stream and off-stream pumped storage projects.

On-stream generating pumped storage projects account for 63 projects.

Their combined potential is 56,926 MW.

Off-stream storage pumped storage projects account for 201 projects.

Their combined potential is 2,33,270 MW.

This shows that most of India’s future pumped storage potential lies in off-stream project development.

Operational capacity

Against the massive identified potential, only 10 projects are currently operational.

Their combined capacity is 7,425.60 MW.

This means only around 2.6% of the identified potential has been developed.

The gap between potential and operational capacity remains very large.

Existing projects

Operational projects include Tehri PSP of 1,000 MW by THDC.

They also include Srisailam LBPH of 900 MW by TSGENCO.

Kadamparai of 400 MW by TANGEDCO is another important project.

Ghatgar of 250 MW by Mahagenco and Bhira PSS HPS of 150 MW in Maharashtra also form part of the operational fleet.

Tehri PSP is the newest addition, with its fourth unit commissioned in April 2026.

Under-construction pipeline

The under-construction pipeline has grown meaningfully.

Eleven projects totalling 15,870 MW are currently under construction.

This reflects faster movement by both public-sector and private developers.

Policy support from the Ministry of Power has helped accelerate construction activity.

Major projects

Key under-construction projects include Adani’s 1,200 MW Rampur PSP in Himachal Pradesh.

JSW Energy’s 1,500 MW Kutehr project is also part of the pipeline.

Torrent Power’s 3,000 MW Saidongar Karjat PSP in Maharashtra is among the largest off-stream pumped storage projects in India.

The Saidongar Karjat project received CEA concurrence in FY26.

Survey and investigation stage

The survey and investigation stage remains the largest active category.

There are 65 projects totalling 93,350 MW at various stages of site investigation.

This shows that the pipeline is deep, but still far from construction.

An additional large project universe remains outside operational capacity.

This highlights the long gestation cycle of pumped storage development.

Target challenge

The government has set a target of reaching 40 GW of pumped storage capacity by 2031-32.

Achieving this will require unprecedented acceleration.

Projects must move quickly from survey and investigation to detailed project report preparation, clearances, financing, construction, and commissioning.

Given the complexity of pumped storage projects, this will be a major execution challenge.

Strategic importance

Pumped storage is becoming critical for India’s renewable energy transition.

As solar and wind capacity rises, the grid needs flexible storage that can absorb surplus renewable generation and supply power during evening peaks.

Pumped storage provides long-duration storage and grid-balancing capability.

It can also support frequency stability and peak demand management.

Market message

India has no shortage of pumped storage potential.

The real challenge is conversion.

Only 7,426 MW is operational against an identified potential of 2,90,196 MW.

The next phase will depend on faster clearances, stronger financing models, transmission readiness, environmental safeguards, and credible offtake arrangements.

Southern Region data for 26 February 2026 shows Kadamparai generating 0.5355 MU (22 MW average).

Kadamparai (Pump) consumed 0.615 MU (26 MW average).

Net negative yield: approximately 0.08 MU.

From 00:00–06:00 HRS, TRAS recorded 0.0000 MWh in bids and cleared volumes.

During 06:00–08:00 HRS, purchase bids reached 31,123 MW against 9,746 MW sell bids.

DAM prices locked at Rs 10,000/MWh.

At 14:11 HRS, the YTPS-ST-2 transformer tripped.

The grid recorded 171 excursions below 49.97 Hz, with a low of 49.745 Hz.

National capacity offline: 64,280 MW (20.84%).

Gas fleet mothballed; coal plants slow to ramp.

Operators manually throttled evacuation lines pending restoration.

BESS Projects highlighted in Southern committee records show a mismatch between storage commissioning and transmission completion. While Pumped storage projects are nearing operational milestones, evacuation infrastructure is delayed due to cost allocation disputes.

States have resisted signing off on socialised transmission charges tied to BESS Projects, arguing that flexibility benefits are national in scope. This has slowed development of related Green Energy transmission project lines.

Power quality audits indicate that without storage absorption, renewable nodes face harmonic distortion and voltage instability. Latest Power exchange reports show peak evening prices reaching ceilings even when theoretical storage capacity exists. Transmission bottlenecks prevent stored energy from reaching demand centres.

Cybersecurity compliance requirements at 220 kV substations are adding incremental operational costs. These factors collectively reduce the commercial viability of BESS Projects despite technical readiness.

The gap between commissioned capacity and actual dispatch capability signals a structural bottleneck. Pumped storage projects and battery systems require synchronized tariff frameworks to unlock flexibility value.EnergylineIndia.com provides verified analysis of policy decisions shaping BESS Projects and evolving grid flexibility economics, Battery Storage, Pumped Storage, Energyline India, Grid Planning, Tariff Policy.

Buried inside a seemingly standard GeM consultant tender is a quiet but significant shift in how subsurface risk is being allocated in India’s pumped storage hydro projects. WAPCOS is not merely outsourcing testing—it is systematically moving geological and material risk out of EPC hands and into the consultant layer, long before construction begins.

The implications extend far beyond lab reports.

1) Tender Snapshot — WAPCOS / Balimela Pumped Storage Project

Promoter: WAPCOS Ltd

Tender Reference: GEM/2025/B/7003667

Project Location: Balimela Pumped Storage Project, Malkangiri district, Odisha

Category: Hiring of consultants (milestone / deliverable-based)

Scope Headline: In-situ and laboratory testing for rock and construction materials

Bid Issue Date: 15 December 2025

Bid Closing Date: 3 February 2026

Bid Model: Single-stage GeM bidding with milestone-linked payments

Bid Security: EMD via GeM module, with MSE exemptions and forfeiture triggers

Performance Security: PBG applicable post-award as per GeM and WAPCOS norms

This tender sits squarely in the geotechnical risk-definition phase of a pumped storage asset—where early material characterisation directly affects dam safety, underground cavern stability, and long-term O&M exposure.

2) Scope of Work — Technical, Not Advisory

The consultant is responsible for end-to-end in-situ and laboratory testing of rock and construction materials. This includes:

Field investigations and sample collection

Laboratory characterisation and testing

Interpretation and validation of results

Structured reporting aligned with defined milestones

Payments are linked to accepted deliverables, not time spent.

This design places the consultant directly at the design–construction interface, transforming testing from a support function into a risk-bearing technical gatekeeper.

3) What Changed — And What Didn’t

This is a fresh tender issuance, not an amendment or corrigendum.

No prior withdrawn or superseded versions are referenced

No scope, timeline, or security deltas exist at launch

No phased clarifications have been issued

The absence of early amendments suggests WAPCOS is testing market discipline upfront, rather than correcting bidder behaviour later.

4) Clauses That Quietly Shift Risk

Several contractual elements work together to reallocate execution risk:

EMD and Bid Security: Enforced through GeM with explicit forfeiture triggers

Milestone-Based Payments: Cashflow tied strictly to validated outputs

Scope Responsibility: Full accountability for accuracy, interpretation, and documentation

Performance Security (PBG): Locks in post-award discipline and defect exposure

Collectively, these clauses push subsurface uncertainty away from the promoter and onto the consultant.

5) Who Actually Benefits?

WAPCOS benefits most. Early-stage technical risk is identified before EPC mobilisation escalates costs. Milestone payments protect against time overruns without verified output.

Consultants benefit only if they are technically deep. Firms with calibrated labs, hydro-geotechnical experience, and internal quality systems can manage fixed deliverables. Smaller or generalist labs face outsized liability exposure.

Net result: A decisively client-favourable risk allocation.

6) Why This Matters for Pumped Storage

In pumped storage projects, rock quality mischaracterisation is a balance-sheet risk, not a technical footnote.

Errors at this stage can cascade into:

Cavern redesigns

Grouting escalations

Schedule shocks and claim disputes

By hard-wiring testing into milestone deliverables with security enforcement, WAPCOS is insulating itself from downstream claims—while pushing latent risk into consultant pricing.

7) Standard, Unusual, or Reversal?

Standard: GeM consultant framework, EMD/PBG enforcement, MSE exemptions

Unusual: Breadth of responsibility placed on testing consultants without explicit design-liability carve-outs

Reversal: None observed

This is evolution, not experimentation, aligned with recent PSU tightening of upstream risk controls.

8) What the Tender Does Not Address

Notably absent:

Explicit liability caps for test interpretation errors

Escalation mechanisms for extended site access or repeat testing

Clear dispute resolution details (arbitration seat, governing law)

Operational clarity on tax and duty pass-through

In high-risk geology, these silences are material.

9) Likely Bidder Behaviour

Expect:

Limited participation from small labs and generic QA/QC vendors

Preference for firms with hydro, tunnelling, and dam-specific credentials

Conservative pricing that absorbs reinterpretation and liability risk

The structure discourages speculative under-pricing and signals technical depth over bidder volume.

10) Trend or One-Off?

Trend: Across hydro and PSP projects, promoters are increasingly hard-coding geotechnical certainty into early contracts. GeM is evolving from a price-discovery tool into a risk-governance platform.

One-Off? Balimela’s geological sensitivity may justify tighter exposure. But if execution is smooth, similar milestone-driven testing tenders could soon become standard—especially in Odisha and eastern India.

11) Bottom Line Analysis

This tender reveals WAPCOS’s risk philosophy in its purest form: push uncertainty upstream, pay only for validated outputs, and secure performance financially.

Technically: Testing becomes a project-readiness gate

Commercially: Bidders must price error consequences, not just lab work

Legally: Silence on liability caps shifts negotiating power post-award

Expect conservative bids, strong credential signalling, and minimal post-award flexibility. This tender will quietly shape how EPCs approach the Balimela PSP—with fewer assumptions and tighter specifications.

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The Dec’25 CEA hydro profile shows activity in India’s pumped-storage pipeline, but much of it happens on paper.

Normally, pumped storage momentum is visible through fresh MW entering the system. This update highlights bucket migration instead.

Signals hidden in the numbers:

✅ Maharashtra shows extensive reclassification within its PSP pipeline.

⚠️ S&I and “concurred but not taken up” categories expand together.

❌ Balance capacity reduces without equivalent new additions.

🔎 Most states reflect administrative churn rather than construction movement.

✅ Uttarakhand’s commissioned PSP increase stands apart.

⚠️ Revised project metadata complicates maturity assessment.

🔎 A swelling appraisal queue may itself delay delivery.

As planners rely more on PSP for flexibility, understanding what these megawatts represent becomes critical.

Are these numbers describing readiness — or just readiness to be reviewed?

The latest development in Hydro EPC tenders sees OHPC pushing the submission of its 600 MW Upper Indravati Pumped Storage Project to 1 December 2025 after three deadline revisions. The tender integrates civil, hydromechanical, and electro-mechanical components

under one turnkey EPC, inviting global OEMs through an international competitive bid. The scope includes design and installation of four 150 MW reversible pump-turbine units, pressure shafts, headrace and tailrace tunnels, surge shafts, and a 400 kV GIS yard.

 These features place it among the most technically demanding hydropower EPC contracts in India’s state portfolio.The prolonged extension points to consortium-building challenges and detailed scope alignment for OEM supply chains. For OHPC, the move secures bid quality and broader participation without compromising evaluation integrity,Hydro EPC Tenders, OHPC, Upper Indravati, Pumped Storage, Energy line India,Hydro Power Projects, EPC Contracts, Odisha Hydro.

Read the full verified update on EnergylineIndia.com.