Pumped Storage Hydropower Tender

Scope : To Set up 5 GW Pumped-Storage Hydropower (PSH) Facility in India

The Adani Group plans to invest ?25,000-27,500 crore (about $3 billion) to set up its first pumped-storage hydropower (PSH) facility. PSH produces electricity by moving water between two reservoirs at different elevations.

Under the plan, Adani Green Energy Limited (AGEL) will set up PSH capacity of 5 GW in the next five years. They will eventually increase this to 25 GW, which will take the group’s total green-energy capability to 70 GW.

To start with, the group will set up PSH generation facilities in four states – Maharashtra, Andhra Pradesh, Tamil Nadu and Telangana.

This will require an investment of ?25,000-27,500 crore, based on the current costs. Some of the required reservoirs and separate elevation facilities have already been put in place.

The financial closure for commissioning 3.5 GW of PSH capacity has already been done. The 5GW target will be funded by issuing new shares and raising debt, and that the group has already begun basic construction work for the first 500 MW PSH project in Andhra Pradesh, which will be commissioned in FY27.

Typically, infrastructure assets are funded with debt and equity in the ratio of 70:30. For funding Adani's green energy projects of 11 GW in the next two years, including the latest one based on PSH, the equity portion of financing will come from promoter infusion and internal accruals.