Global Pumped Hydro Storage (PHS) Market Report - Market Analysis, Size, Share, Growth, Outlook - Industry Trends and Forecast to 2028

Drivers:

• Rising number of projects planned and announced globally – U.S.A., Middle East, South Africa, Ireland, India, China, Morocco, and Australia. 
• Growing support from the Governments through funding and tariffs to reduce carbon emissions.
• Increasing need for grid-scale flexibility and long-duration energy storage technologies.
• Growing penetration of renewable energy generation (Wind and Solar power)

Pumped Storage Hydropower:

Pumped Storage Hydropower (PSH) or Pumped Hydropower Storage (PHS) is hydroelectric energy storage. Pumped hydro storage acts as a vast water battery storing the power during off-peak periods then releasing it when needed during high peak demand. 

Pumped hydro storage consists of two water reservoirs at different elevations, upper reservoir and lower reservoir, control equipment, turbines, and pumps that act as generators and motors.

When there is cheap surplus electricity available from wind farms and solar, the electricity generators are switched to become motors, using which the water is pumped into the upper reservoir (recharge). 

During the peak demands, water flows down from the upper reservoir to the Lower reservoir (discharge), passing through a turbine to generate power. Pumped hydro storage provides long-duration energy storage compared with batteries and other energy storage technology.

Pumped Hydro Storage is one of the most efficient energy storage solutions because it is sustainable, cost-competitive, and large-scale—both in the amount of energy stored and in time of storage. 

Pumped storage hydropower (PSH) is classified as open-loop (continuously connected to a naturally flowing water feature) or closed-loop (not connected to a naturally flowing water feature continuously).

As the leading technology for energy storage services pumped hydro storage balances variable power generation and provides a solid backup due to its firm capacity. Pumped storage's inherent operating flexibility allows it to provide a wide range of benefits, and it plays an integral part in local and regional water and energy projects.

Benefits of Pumped hydropower storage:

• Can provide capabilities comparable to or better than thermal generating and other energy storage technologies.
• The most economical storage technology for long discharge periods.
• Enables access to incremental revenue streams through participation in local ancillary services markets.
• A remarkable lifetime of more than 80 years.
• Pumped storage plants can operate at up to 82 percent efficiency.
• Water resources management and flood control.
• Accommodates Hybrid concepts such as combining pumped hydro storage and wind or solar.
• Best-proven, low-risk technology.
• Achieves a balance between variable renewable energy generation and demand.
• Bottlenecks in the grid are managed.
• Supports grid stability by responding quickly to changes in demand or outages.

With about 160 GW of installed capacity and 9,000 GWh of energy storage capacity, pumped storage hydropower (PSH) now accounts for over 90% of the world's grid-scale energy storage applications.

Top 10 Countries for Pumped Hydro Storage installed Capacity:

Restraints:

• Alternative energy storage technologies for longer durations – Hydrogen.
• High-capex investment and availability of economically viable sites.
• Delays in project implementations and revenue recognition. 
• Lack of supportive government policies for projects with up-front costs and long build times.

Recent Developments:

• On May 18, 2021, GE Renewable Energy announced to supply and commission two 85 MW variable speed pumped storage turbines to the Austrian National Railway Operator, ÖBB, for the new Tauernmoos Pumped Hydro Storage Power Plant located in Austria.
• On July 6, 2021, The Government of Israel, through the Electricity Authority (IEA) and Israel Electric Company (IEC), gave Ellomay Pumped Storage Limited the initiative to build and operate the 156MW Manara pumped storage power plant in Israel.
• On March 18, 2020, Greenko Energy Projects Ltd awarded a USD 2.5 Million contract to AFRY India to provide Detailed Design Engineering services for a 1200MW Pumped Storage project in India.
• On April 29, 2021, andRITZ AG received an order for electro-mechanical equipment for Australia’s first pumped storage plant for more than 40 years, 250-MW Kidston pumped storage plant in North Queensland, Australia, from McConnell Dowell and John Holland.

Opportunities:

• Large growth potential in China and India due to government’s targets and financial incentives towards projects.
• High growing potential for the closed-loop PSH projects in China, North America, Europe, India, Vietnam, and Indonesia.

Regional Analysis:

China:

• Pumped hydro storage has remained a focus in China's energy transition since the country leads the world in pumped storage hydropower installed capacity, with 31.49 GW as of 2020.
• China mainly drove recent developments globally for pumped storage hydro plants as approximately 80% of new pumped hydro plants currently under construction are in China. 
• In the 2021 Energy Work Plan issued by the National Energy Administration, nationwide medium and long-term planning for pumped storage is emphasized. 
• PSH revenue in China is currently decided by the Chinese government using a two-part tariff system, a combination of a fixed annual capacity-based payment and generation-based tariff intended for cost recovery. 

Pumped Hydro Storage installed Capacity:

Blackridge Research's Global Pumped Storage Hydropower Market report provides insights into the current global and regional Global market demand scenario and its outlook.

This study offers a detailed analysis of various factors instrumental in affecting the Global Pumped Storage Hydropower market's growth. The study also comprehensively analyses the market based on configuration (Open-Loop and Closed-Loop) and geography (North America, Europe, Asia-Pacific, and the Rest of the world).

This report also includes the latest market trends, drivers and restraints, present and future opportunities, new projects, the global impact of Covid-19 on the Global Pumped Storage Hydropower market, and significant developments.

Further, the report will also provide Global Pumped Storage Hydropower market installed capacity, demand forecast, and key competitors in the market.