Tata Power has announced an investment of ₹11,000 crore in a pumped hydro storage project at Shirawta, Pune. The initiative, part of an agreement with the state government, also includes a complementary project at Bhivpuri in Raigad district. Together, the two will deliver 2,800 MW of clean power capacity, with the Shirawta project contributing 1,800 MW and Bhivpuri adding 1,000 MW.
Officials said the Shirawta project will play a key role in providing clean energy to Mumbai by storing surplus electricity and releasing it during high-demand periods. This mechanism will ensure grid stability and help balance intermittent renewable power sources like solar and wind. The project’s financing will follow a 70:30 debt-equity ratio, according to company executives who described it as a long-term commitment to sustainable energy reliability. Pumped hydro storage is considered one of the most efficient and environmentally sustainable forms of large-scale energy storage. It functions as a “natural battery”, using gravitational potential energy to store electricity during off-peak hours and discharge it when demand rises. Industry experts noted that such projects are essential for integrating renewable sources into India’s growing power grid while maintaining supply consistency.
The Bhivpuri project is also progressing, with Tata Power in talks with industrial and commercial consumers to secure future clean energy supply agreements. The company aims to onboard customers within six months, thereby strengthening its role as a key player in India’s energy transition. Energy sector observers highlighted that this investment aligns with both state and national climate goals, particularly India’s commitment to achieve 50% of its electricity capacity from non-fossil fuel sources by 2030. “Pumped storage will be the backbone of India’s renewable expansion strategy, ensuring round-the-clock availability of green power,” said a senior industry analyst.
Experts further pointed out that such projects will help Mumbai — a high-energy-demand city — shift toward a more sustainable and self-reliant power ecosystem. By reducing reliance on fossil fuels, the initiative is expected to cut emissions and strengthen the region’s energy security. As India scales up renewable capacity, investments in grid flexibility solutions like pumped hydro storage are becoming vital to achieving both decarbonisation and reliability targets. Tata Power’s Maharashtra projects, once operational, are expected to set a benchmark for large-scale clean energy storage in the country.
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