IESA Report Links LDES Scale-Up to India's 500 GW Clean Energy Goal
The India Energy Storage Alliance (IESA) has identified long-duration energy storage (LDES) scale-up as a prerequisite for India achieving its 500 GW renewable energy target, with FY28 viability gap funding highlighted as the key policy enabler, according to reports published on 30 October 2026 by Energetica India Magazine, ET EnergyWorld, pv magazine India, and BioEnergy Times.
The IESA findings, reported consistently across all four outlets, position LDES — a category that includes pumped storage hydropower among other technologies — as central to managing grid reliability as variable renewable capacity expands rapidly toward 2030.
Pumped Storage Projects in the Pipeline
Pumped storage hydro has emerged as one of the primary LDES pathways under active development in India. Projects India tracks 2,129 hydel-based power projects across the country, of which five were added in the last 90 days. Several large pumped storage schemes are currently at an advanced stage of development, as shown in the table below.
| Project | Promoter | Location | Value | Stage |
|---|---|---|---|---|
| Pumped Storage Hydro Power Project | Odisha Hydro Power Corporation Limited | Kalahandi, Odisha | Rs 3,160 crore | Under Approvals |
| Pumped Storage Hydel Power Project | Jhariya Ananturja Private Limited | Sonbhadra, Uttar Pradesh | Rs 7,457.68 crore | Under Approvals |
| Pumped Hydropower Storage Project | Avaada Group | Sirohi, Rajasthan | Rs 5,800 crore | Under Approvals |
| Bhivpuri Off-Stream Open Loop Pumped Storage Project | Tata Power | Raigad, Maharashtra | Rs 2,470 crore | Construction Started |
| Hydroelectric Power Project | Adani Renewable Energy Fifty Two Limited | Pune, Maharashtra | Rs 7,048 crore | Under Approvals |
| Hydel Power Project | Andhra Pradesh Power Generation Corporation Limited (APGENCO) | Visakhapatnam, Andhra Pradesh | Rs 11,054 crore | Approvals Received |
Where Hydel Projects Are Concentrated
The geography of India's tracked hydel pipeline reflects the country's river basin distribution. Himachal Pradesh leads with 438 tracked projects, followed by Arunachal Pradesh with 415 and Uttarakhand with 259. Maharashtra accounts for 182 projects, while Jharkhand and Madhya Pradesh hold 98 and 76 respectively. Suppliers and civil contractors looking to position themselves in this sector will find the heaviest concentration of activity in the northern hill states, though Maharashtra's pumped storage pipeline is growing in significance given projects such as the Bhivpuri scheme already under construction and the Rs 7,048 crore Adani Renewable scheme in Pune still under approvals.
Stage Breakdown: Where the Pipeline Stands
Of the 2,129 hydel projects tracked by Projects India, 1,070 are currently under approvals — representing a substantial future workload that has not yet reached procurement. A further 264 are in active construction, while 70 have received approvals and are approaching the contracting phase. Another 208 are in planning, 247 are completed, and 142 are on hold. This distribution indicates that the bulk of the hydel pipeline remains pre-construction, with conversion from approvals to active build contingent partly on the policy and funding conditions the IESA report addresses — including viability gap support expected in FY28. The broader power sector is projected to draw significant investment over the coming years, providing context for the scale of activity ahead.
What this means for suppliers and contractors
The IESA report's emphasis on LDES scale-up — and specifically on FY28 viability gap funding as the trigger — suggests that a significant tranche of pumped storage projects currently sitting under approvals could move toward procurement in the financial year beginning April 2027. For equipment manufacturers, civil contractors and electrical subcontractors, the approvals pipeline of 1,070 projects represents the primary watch-list for upcoming tendering activity.
Geographically, Himachal Pradesh and Arunachal Pradesh dominate by project count, making them priority markets for companies with hydro-specific capabilities. However, the larger individual pumped storage schemes — several exceeding Rs 5,000 crore — are distributed more broadly across Odisha, Uttar Pradesh, Rajasthan, Maharashtra and Andhra Pradesh, offering opportunities for contractors not positioned in the mountain states.
With no open India tenders currently recorded in the Power Projects sector on the Projects India platform, suppliers are advised to monitor the approvals pipeline closely. Projects receiving approvals or moving to construction starts will be the earliest indicators of procurement timelines. The live tenders page provides current visibility on active procurement across power sub-sectors.
Frequently asked questions
What did the IESA report say about India's 500 GW renewable energy target?
An IESA report published on 30 October 2026 stated that scaling up long-duration energy storage is essential to India meeting its 500 GW renewable energy target by 2030, with viability gap funding in FY28 identified as a key policy enabler.
How many hydel power projects are currently tracked in India?
Projects India tracks 2,129 hydel-based power projects nationally. Of these, 1,070 are under approvals, 264 are under construction, 70 have received approvals, and 208 are in the planning stage.
Which states have the most hydel power projects in India?
Himachal Pradesh leads with 438 tracked projects, followed by Arunachal Pradesh with 415, Uttarakhand with 259, Maharashtra with 182, Jharkhand with 98, and Madhya Pradesh with 76.
What is viability gap funding and why does it matter for energy storage in India?
Viability gap funding is a government subsidy mechanism to make projects commercially viable. The IESA report identifies FY28 viability gap funding as a key enabler for scaling long-duration energy storage to support India's 500 GW clean energy goal.
