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Pumped storage (PSP)
What it is
Pumped storage pumps water uphill using surplus power and releases it through turbines when demand peaks - the oldest and largest-scale grid storage technology. India had ~13,120 MW under construction and ~9,580 MW concurred as of Jan 2026
It provides long-duration storage that batteries currently cannot match economically
Impact on industries
- Long duration and very long asset life make it the natural complement to batteries, which handle short-duration balancing
- Large committed pipeline creates a multi-year order stream for civil contractors, tunnelling, turbines and electrical equipment
- Gestation is roughly eight years against 6-18 months for BESS, so it cannot respond to near-term firming needs
- Requires specific topography, water availability and land, with environmental and tunnelling clearances that frequently delay projects
- Battery cost declines are eroding the economic case at shorter durations, so PSP's role is narrowing to genuinely long-duration storage