Tehri Pumped Storage Project: GE Vernova activates first 250 MW variable speed unit

GE Vernova Inc. (NYSE: GEV) has successfully commissioned the first variable speed pumped storage hydropower unit in India, located at the Tehri Hydropower Complex in Uttarakhand. Announced on June 6, 2025, the milestone marks the operational debut of a four-unit 1 gigawatt (GW) expansion being implemented by GE Vernova for THDC India Limited. Upon completion, the complex’s capacity will reach 2.4 GW—making it the largest hydropower installation in the country.

This project positions GE Vernova, a U.S.-based global energy infrastructure leader, at the forefront of India’s long-duration energy storage strategy. The commissioning comes at a critical time when India is accelerating renewable integration and grid modernization.

What is the significance of variable speed pumped hydro storage?

Variable speed pumped hydro storage represents a significant leap in energy storage technology, offering enhanced grid flexibility through precise load balancing and rapid transition between turbine and pumping modes. Unlike conventional fixed-speed units, variable speed systems allow dynamic operation under fluctuating demand conditions, which is increasingly essential as India adds solar and wind to its energy mix.

Frederic Ribieras, CEO of GE Vernova’s hydropower division, explained that the new units will enable fast mode shifts and finer power control, creating a more stable and resilient grid architecture. These operational flexibilities are particularly valuable in managing India’s growing share of renewables, which surpassed 180 GW in total capacity earlier this year.

Pumped hydro acts as a “mechanical battery.” During off-peak hours or periods of excess renewable generation, water is pumped to a higher reservoir using surplus electricity. It is later released to generate electricity during demand surges. Globally, this method accounts for 94% of all long-duration energy storage, according to the International Hydropower Association.

Why was Tehri chosen for India’s first variable speed system?

The Tehri Hydropower Complex, situated in the Himalayan foothills, offers ideal topographical and hydrological conditions for pumped storage systems. The site already includes a 1 GW Tehri Hydro Plant (commissioned in 2006) and the 400 MW Koteshwar Plant (commissioned in 2012). The newly commissioned 250 MW variable speed unit is the first of four such installations forming the Tehri Pumped Storage Plant.

The overall 1 GW expansion is being executed under a contract first signed in 2011 with THDC India Limited. GE Vernova’s solution includes the full water-to-wire system: doubly fed induction motor-generators, pump turbines, converters, and grid control systems. This vertically integrated delivery is critical for ensuring synchronization between mechanical, electrical, and control components.

In addition to power generation, the Tehri complex supports irrigation and potable water needs for Uttarakhand during non-monsoon months, highlighting its multifaceted utility.

How does this fit into India’s long-duration energy storage strategy?

The Ministry of Power has recently elevated pumped hydro’s role in India’s storage roadmap, issuing guidelines in 2023 to expedite approvals and investments. With lithium-ion storage still costly for multi-hour durations, pumped storage provides a low-cost, high-efficiency alternative capable of stabilizing large regional grids.

The Tehri commissioning is likely to catalyze further pumped hydro investments in states like Himachal Pradesh, Sikkim, and Arunachal Pradesh. India’s Central Electricity Authority has projected a need for 41 GW of pumped hydro capacity by 2032 to support its renewable energy goals.

GE Vernova’s implementation of variable speed systems introduces a more adaptable, next-generation solution into this framework—making the Tehri project a bellwether for future projects.

What is GE Vernova’s footprint in India and globally?

GE Vernova’s presence in India spans generation, transmission, and grid modernization. The company operates five Technology and Engineering Centers and 11 manufacturing sites in the country. Its Indian workforce exceeds 10,000 employees, including more than 3,000 engineers and technologists.

Globally, GE Vernova employs approximately 75,000 people across 100 countries. Headquartered in Cambridge, Massachusetts, it was formally spun off from General Electric in April 2024 and now trades independently on the New York Stock Exchange under the ticker GEV. The company’s portfolio includes Power, Wind, and Electrification segments, supported by accelerator businesses aimed at decarbonizing global energy systems.

This commissioning reinforces GE Vernova’s competitive position in hydropower modernization—particularly in emerging markets with rapidly evolving energy needs.

What is the investor sentiment toward GE Vernova’s strategy?

GE Vernova’s stock (NYSE: GEV) has been trending positively, with shares trading around USD 122 as of June 7, 2025—representing a 12% year-to-date increase. The company has outperformed legacy industrial peers like Siemens Energy and Mitsubishi Power, with analysts attributing the growth to strong project execution and strategic wins across Asia, Europe, and Latin America.

Institutional investors such as BlackRock and Capital Group have increased their holdings over Q1 and Q2 2025, citing confidence in GE Vernova’s clean energy expansion. Foreign Institutional Investors (FIIs), particularly sovereign funds in the Gulf and ASEAN regions, are also reportedly monitoring its hydropower and grid infrastructure footprint in South Asia.

Domestic Institutional Investors in the U.S. have maintained overweight ratings, with brokerages like Raymond James and RBC Capital Markets issuing “Outperform” guidance. Retail investor sentiment has gained traction following appearances at the Bloomberg New Energy Finance Summit and India Energy Week 2025.

Should investors consider buying GE Vernova shares?

With its growing backlog in long-duration storage, active global footprint, and rising relevance in energy transition portfolios, GE Vernova is seen as a Buy for long-term, decarbonization-focused investors. While the stock’s valuation at ~28x forward earnings reflects growth expectations, its risk-adjusted return outlook remains strong due to diversified exposure and operational scale.

Key catalysts include upcoming milestones in the remaining three units at Tehri, new project awards in Southeast Asia and Africa, and potential acceleration in U.S. grid investments under the Inflation Reduction Act. Risks include currency volatility, regulatory uncertainties in emerging markets, and potential margin pressures in high-capex segments like Electrification.

Overall, sentiment around GE Vernova is constructively bullish. It offers a unique blend of energy infrastructure defensiveness and clean tech upside—a rare profile in today’s market.

What’s next for India’s hydroelectric evolution?

The successful deployment of variable speed pumped storage technology at the Tehri Hydropower Complex marks a critical inflection point in India’s renewable energy journey. As the country transitions from a fossil-fuel-heavy grid to one dominated by solar and wind, flexible, dispatchable storage will no longer be optional—it will be foundational. Hydropower, especially in its modern pumped storage form, is uniquely positioned to serve as the backbone of this clean energy shift. The Tehri upgrade showcases how hydropower assets can be reimagined not just as generators, but as dynamic, long-duration grid stabilizers.

India’s energy planners, including the Central Electricity Authority and Ministry of Power, are now viewing pumped storage with increased strategic importance. Policy roadmaps and draft guidelines released over the last two years explicitly call for 18–20 GW of new pumped hydro capacity by 2032, with a focus on projects in hilly regions such as Himachal Pradesh, Uttarakhand, Maharashtra, and the Northeastern states. This pivot is expected to unlock new public–private partnerships and spur investment from both Indian and foreign infrastructure funds.

Meanwhile, financial institutions such as the Power Finance Corporation, REC Limited, and even multilateral lenders like the World Bank and ADB are ramping up support for hydro modernization and hybridization. Future projects are likely to explore combining pumped hydro with floating solar systems on reservoirs, offering a dual-generation and storage solution that maximizes water-body utilization while addressing land constraints.

At the technology frontier, next-gen hydroelectric evolution will also be driven by the integration of smart grid components and AI-powered control systems. Digital twin models for turbine performance, predictive maintenance algorithms, and grid-interactive controls are already under exploration. These capabilities will help optimize load dispatch in real-time and enhance responsiveness to short-term renewable fluctuations—a key limitation in current hydro systems.

GE Vernova’s involvement in the Tehri expansion sets a benchmark for technical innovation and project execution. With its advanced doubly fed induction motor generators and responsive control systems, the project has introduced a new standard in hydro performance for India. Looking ahead, similar variable speed deployments may soon be replicated at other large hydro complexes such as Sardar Sarovar in Gujarat, Subansiri Lower in Arunachal Pradesh, and Dhauliganga in Uttarakhand.

Moreover, regulatory bodies are considering market design reforms that would allow pumped storage assets to participate more actively in ancillary services, capacity markets, and frequency regulation frameworks. This could open up additional revenue streams for developers and improve the bankability of future hydro storage projects.

Ultimately, Tehri stands as more than just an engineering achievement—it is a national energy blueprint in action. It demonstrates that with the right mix of global technology, local capacity, and forward-looking policy, India can chart a path toward a more resilient, low-carbon grid. In an era where grid inertia, seasonal variability, and climate volatility are becoming defining challenges, the evolution of hydroelectric infrastructure will be central to maintaining energy security and sustainability.

As India aims for 500 GW of non-fossil capacity by 2030, the question is no longer if hydro storage will scale—but how fast it can be deployed to keep pace with the country’s ambitions. The Tehri Hydropower Complex, now equipped with variable speed pumped storage, offers a compelling answer.