by Pumped hydro storage involves the use of redundant electricity to pump water between reservoirs at different elevations for later power generation and energy storage. The rising demand for renewable energy and regulatory compliance for clean energy are fueling the adoption of pumped hydro storage systems. Pumped hydro storage provides a number of advantages such as bulk energy storage, long-term storage of electricity, and supply of on-demand power. It plays a vital role in stabilizing the power supply from intermittent renewable energy sources such as solar and wind power.
Global pumped hydro storage market is estimated to be valued at US$ 401.19 Bn in 2024 and is expected to exhibit a CAGR of 7.6% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the pumped hydro storage are AbbVie Inc. (Allergan), Terumo Corporation, GlaxoSmithKline PLC, Novartis AG, Medtronic PLC, Abbott Laboratories, Boston Scientific Corp., W L Gore and Associates Inc., Stryker Corporation, and Becton, Dickinson and Company.
The key opportunities in the Pumped Hydro Storage Market Size include increasing investments in renewable energy projects worldwide and technological advancements in pumping and turbine technologies. Countries are focusing on developing large-scale pumped hydro energy storage facilities to meet their increasing energy needs.
Technological advancements such as the adoption of variable speed pumps and advances in pumped hydro combined with battery storage systems are expected to boost the deployment of PHS systems. The integration of advanced control systems and digitalization is also improving the flexibility and efficiency of pumped hydro storage facilities.
Market Drivers
The growing integration of intermittent renewable energy in the grid is a major market driver. With increasing solar and wind installations globally, the flexibility and long-term energy storage capability of pumped hydro are becoming more critical in maintaining grid reliability. Pumped hydro storage addresses the issue of variability and intermittency associated with wind and solar power generation by ensuring power is available on demand when the renewable sources are not generating electricity. This drives significant growth in pumped hydro storage capacity worldwide.
Current challenges in Pumped Hydro Storage Market
The Pumped Hydro Storage Market Size faces significant challenges related to long development cycles and high upfront capital costs associated with developing new projects. Obtaining appropriate land rights and permits is a lengthy multi-year process for any large-scale energy infrastructure project. Environmental regulations also introduce compliance requirements that add to development timelines and expenses. The use of dams and reservoirs creates risks that must be thoroughly evaluated and mitigated related to potential impacts on local ecosystems and communities. Additional challenges include limited opportunities for new conventional sites, as most optimal locations have already been developed, and public opposition from local stakeholders concerned about land use and environmental effects.
SWOT Analysis
Strength: Mature large-scale storage technology with proven performance over several decades; provides cost-effective long-duration energy storage.
Weakness: High upfront capital costs; limited opportunities for new sites in developed markets.
Opportunity: Expanding renewables integration driving greater need for long-duration energy storage solutions; growth in emerging markets with available hydro resources.
Threats: Environmental regulations and public opposition can delay or cancel new projects; cost competitiveness threatened by rapid improvements in alternative storage technologies.
The US and China currently account for over half of the global installed pumped hydro storage capacity due to extensive historical development of hydroelectric power resources and growing integration of variable renewable energy. Europe is another major regional market, led by countries like France, Germany, Spain, Switzerland, and Italy. Fast-growing emerging markets in South America, Africa, and Asia such as Brazil, India, Indonesia, and South Africa are expected to increasingly adopt pumped hydro storage to support national goals for more sustainable energy mixes utilizing domestic hydro and wind/solar resources.
The Asia Pacific region excluding China presents significant opportunities for future pumped hydro storage market growth between 2024-2031, projected to exhibit the highest CAGR during the forecast period. This is driven by multiplying pumped hydro storage project pipelines and the massive long-term renewable energy expansion plans of key developing countries like India, Japan, Vietnam, Philippines, and Australia seeking large-scale energy storage capabilities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
