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The Government of Gujarat has announced the Pumped Storage Project (PSP) Policy 2025, targeting the establishment of 75 GWh of storage capacity by 2035 and a long-term goal of developing 100 PSPs by 2047. The policy aims to attract investments of approximately ₹750 billion (~$8.35 billion) and will be effective for 10 years, with incentives applicable for up to 40 years or the project's operational life.

The policy recognizes PSPs as an effective energy storage solution that can absorb surplus renewable energy during off-peak hours and supply power during high demand. It outlines a structured project allocation approach, allowing development through nomination, competitive bidding, or self-identification, involving public sector undertakings and private developers, catering to utilities, distribution companies, open-access consumers, and power exchanges.