Highest Annual Deployment of Pumped Storage on Record: 2026 World Hydropower Outlook | Current Affairs | Vision IAS

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In Summary

  • Global hydropower capacity reached 1,469 GW in 2025, with pumped storage surpassing 200 GW, becoming the largest long-duration energy storage.
  • China leads hydropower additions (40%+), while India added 4 GW, becoming the 5th largest globally, aiming for 100 GW by 2035-36.
  • India promotes pumped hydro storage via Ministry of Power guidelines, ISTS charges waiver, and exemptions for off-stream projects.

In Summary

The report was published by International Hydropower Association (IHA), a non-profit membership organisation.

Key Highlights of the Report

  • Global hydropower capacity: Reached 1,469 GW in 2025.
  • Global Pumped storage capacity: Surpassed 200 GW for the first time (world’s largest source of long-duration energy storage)
    • It is on track to double over the next 10 years.
  • China: Accounts for over 40% of worldwide hydropower capacity additions in 2025.
  • India: Added over 4GW of new hydropower capacity in 2025, surpassing Russia to become the world's 5th largest country for total installed hydropower capacity

About Pumped Hydro Storage

  • It is a large-scale electricity storage technology that stores energy in the form of gravitational potential energy of water, using two reservoirs at different elevations.
  • Benefits: Grid stability and peak-load management
  • Challenges:
    • High upfront capital and long gestation periods.
    • Delays in regulatory clearances (land acquisition, forest, and environmental approvals).
    • Seasonal water stress may affect project viability in some regions.

Status of Pumped Storage Hydropower in India

  • Potential: 288 GW (Central Electricity Authority (CEA) estimates) 
  • Operational Capacity: 10 projects with 7.425 GW capacity are commissioned and operational
  • India’s targets: 100 GW by 2035-36.

India’s Efforts towards Pumped Hydro Storage

  • Ministry of Power issued guidelines to promote pumped storage projects and streamline project allotments.
  • Off-stream closed-loop PSPs were exempted  from CEA concurrence requirements streamlining approvals.
  • Full Inter-State Transmission System (ISTS) charges waiver extended to June 2028.
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Inter-State Transmission System (ISTS) charges

Charges levied on the transmission of electricity across state borders. A waiver of these charges for renewable energy projects until 2028 aims to reduce the cost of renewable energy and encourage its wider adoption.

Off-stream closed-loop PSPs

Off-stream closed-loop pumped storage projects are those that do not directly use rivers or natural water bodies. Water is pumped between two man-made reservoirs, minimizing environmental impact and water source dependency.

Central Electricity Authority (CEA)

A statutory body constituted under the Electricity (Supply) Act, 1948, responsible for technical, economic, and commercial aspects of electricity systems in India. It advises the government on policy and planning.

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