Pumped Hydro Storage Market Size, Share, Growth & Industry Analysis, By Type (Open-loop, Close-loop), By Source (Natural Reservoirs, Artificial Reservoirs) and Regional Analysis, 2023 - 2030

Pumped Hydro Storage Market Size

The global Pumped Hydro Storage Market size was valued at USD 352.87 billion in 2022 and is projected to reach USD 625.65 billion by 2030, growing at a CAGR of 8.52% from 2023 to 2030. In the scope of work, the report includes solutions offered by companies such as General Electric, Voith GmbH & Co. KGaA, Iberdrola, S.A., Solar Impulse Foundation, Duke Energy Corporation, Drax Global, RheEnergise Limited, Bechtel Corporation, Siemens, Sulzer, PowerChina, Toshiba Corporation, ANDRITZ and Others.

The pumped hydro storage market exhibits a strong market outlook, fueled by a convergence of crucial factors and ample prospects. A key catalyst driving this growth is the escalating global emphasis on integrating renewable energy sources. As countries endeavor to diminish their carbon emissions and shift towards cleaner energy alternatives, pumped hydro storage emerges as a critical solution for grid stabilization in the presence of intermittent renewables such as wind and solar power. This technology enables surplus energy to be stored during times of excess supply and subsequently released during peak demand periods, thereby ensuring grid reliability and resilience.

Analyst’s Review 

One key trend emerging in the sector is the continuous expansion of grid-scale installations, driven by the need to integrate renewable energy sources effectively. With the increasing share of wind and solar power in the energy mix, the demand for reliable energy storage solutions like pumped hydro storage becomes crucial to maintain grid stability.

Another noteworthy trend is the advancement of efficient and flexible pumped hydro storage systems. Extensive research and development efforts are dedicated to improving system efficiency, minimizing environmental impact, and enabling swift response to changing grid conditions. Innovations in materials and control systems are anticipated to play a pivotal role in achieving these objectives.

Moreover, there is a growing inclination toward repurposing existing infrastructure for pumped hydro storage. Abandoned mines, quarries, and reservoirs are being explored as potential sites for new pumped hydro facilities, offering cost savings in construction and reduced environmental footprint.

Market Definition

Pumped hydro storage is an innovative energy storage solution that presents significant opportunities for businesses operating in the energy sector. This technology utilizes the power of gravity and water to store and release energy, providing a reliable and scalable solution for managing electricity supply and demand. By leveraging pumped hydro storage, businesses can effectively address the challenges posed by intermittent renewable energy sources and contribute to a more sustainable and resilient energy infrastructure.

One of the key advantages of pumped hydro storage for businesses is its ability to provide large-scale energy storage capacity. This feature is particularly valuable for balancing the fluctuating output of renewable energy sources, such as wind and solar, and ensuring a stable and consistent power supply. By capturing excess electricity during periods of low demand or high renewable energy generation, businesses can store this energy by pumping water from a lower reservoir to an upper reservoir. This stored energy can then be released when demand is high, allowing businesses to optimize their energy usage and reduce reliance on traditional fossil fuel-based power generation.

Pumped hydro storage facilities have a long lifespan and can operate for decades without significant degradation in performance. This longevity translates into a reliable and cost-effective solution for managing energy supply and demand over the long term. Additionally, as the need for energy storage solutions continues to grow, businesses involved in pumped hydro storage can position themselves as leaders in the transition to a more sustainable energy future, contributing to the decarbonization goals and improving their environmental footprint.

In summary, pumped hydro storage presents a compelling opportunity for businesses in the energy sector. With its ability to provide large-scale energy storage capacity, balance renewable energy intermittency, and contribute to more sustainable energy infrastructure, this technology enables businesses to optimize their energy usage and enhance their environmental credentials. While there are initial investment costs and planning considerations, the long lifespan and reliability of pumped hydro storage make it a valuable asset for businesses looking to secure a reliable and cost-effective energy supply while reducing their carbon footprint.

Market Dynamics

Pumped hydro storage serves as a major catalyst for grid reliability enhancement, addressing the need for a stable and dependable grid amid the growing presence of intermittent renewable energy sources, like wind and solar. These systems act as a substantial energy buffer, efficiently storing surplus energy and releasing it during peak demand periods. As the world undergoes a transition to cleaner energy sources, the demand for grid stability solutions, such as pumped hydro storage, is projected to surge.

An attractive pumped hydro storage market opportunity arises from repurposing existing infrastructure for pumped hydro storage. Abandoned mines, quarries, and reservoirs present ideal locations for establishing new pumped hydro facilities. Repurposing these sites not only reduces construction costs and environmental impact but also revitalizes previously unused spaces. This opportunity aligns with sustainability goals and enhances the economic viability of pumped hydro storage across various regions.

The obstacle for pumped hydro storage is the significant upfront investment required to construct new facilities. Building pumped hydro storage plants, particularly larger installations, entails substantial capital costs, including excavation, reservoir creation, and the installation of turbines and equipment. Securing financing for such projects can be challenging, especially in regions where energy policies and incentives are not well-established.

Segmentation Analysis

The global market is segmented based on type, source, and geography.

By Type

Based on type, the market is bifurcated into open-loop and close-loop. The open-loop segment held the largest pumped hydro storage market share in 2022. The oil and gas industry is extensively utilizing open-loop infrastructure due to several factors. Firstly, the increasing global energy demand, driven by growing populations and expanding economies, necessitates the transportation of larger volumes of oil and gas. Open-loops provide a reliable and efficient means of transporting these resources over long distances.

Additionally, the development of unconventional oil and gas resources, such as shale gas and tight oil, has led to a surge in production. These resources often require extensive open-loop networks to transport them from production sites to refineries and distribution centers. Moreover, the need to diversify energy sources and reduce dependence on traditional oil and gas reserves has spurred the development of renewable energy projects.

Pumped Hydro Storage Market Regional Analysis

Based on region analysis, the global market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

North America dominated the pumped hydro storage market in 2022 due to its well-established and robust energy infrastructure, which facilitates the seamless integration of pumped hydro storage systems. The region is actively investing in grid modernization and renewable energy initiatives, thereby fueling the demand for energy storage solutions like pumped hydro storage. Furthermore, the presence of supportive regulatory frameworks and incentives has fostered the development of new pumped hydro facilities, solidifying North America's market leadership.

Moreover, North America continues to demonstrate its commitment to the growth and modernization of existing pumped hydro facilities, as well as the establishment of new ones. This unwavering dedication to advancing energy storage technology places the region in a favorable position for sustained expansion and innovation within the market.

Competitive Landscape

The global pumped hydro storage market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers & acquisitions, Source innovations, and joint ventures to expand their Source portfolios and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization could pose new opportunities for the market.

List of Key Companies in Pumped Hydro Storage Market

• General Electric
• Voith GmbH & Co. KGaA
• Iberdrola, S.A.
• Solar Impulse Foundation
• Duke Energy Corporation
• Drax Global
• RheEnergise Limited
• Bechtel Corporation
• Siemens
• Sulzer
• PowerChina
• Toshiba Corporation
• ANDRITZ

Key Industry Developments

• July 2023 (Partnership): RheEnergise and Mercia Power Response entered into a strategic partnership to evaluate the deployment possibilities of RheEnergise's pumped hydro energy storage technology at Mercia Power Response's grid connections throughout the UK. The objective of this collaboration is to achieve a minimum capacity of 100 MW by the year 2030.
• April 2023 (Expansion): Voith Hydro, a leading company in the hydropower sector, has been awarded a contract to expand the Kruonis pumped storage plant in Lithuania. This project was valued at EUR 150 million, is part of Lithuania's commitment to enhancing energy security through strategic investments. Voith Hydro will contribute to the country's renewable energy goals and support its transition to a more sustainable and resilient energy system.
• February 2021 (Supply): Toshiba Energy Systems & Solutions Corporation secured a significant order from State Grid Xin Yuan Company Limited to supply four 350MW pumped-storage hydroelectric generator units and various balance-of-plant (BOP) systems for the Ning Hai Pumped-Storage Power Plant. This order highlighted Toshiba's expertise in the hydroelectric sector and reinforced its position as a trusted supplier of high-quality equipment for large-scale energy projects.

The Global Pumped Hydro Storage Market is Segmented as:

By Type

• Open-loop
• Close-loop

By Source

• Natural Reservoirs
• Artificial Reservoirs

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America