Existing pumped-hydro-energy storage (PHES) plants in India are inadequately utilised and hence have low economic benefits. With high renewable energy (RE) penetration expected in the coming years, energy storage systems will gain prominence. One of the most economical, available, mature, and bulk energy storage mechanisms is PHES. However, PHES plants are capital-intensive and topographically dependent. Hence, to encourage the setting up of PHES plants, a suitable techno-economic analysis needs to be presented for peaking hours so that more PHES capacity could be integrated into the grid.