Pumped Hydro Storage Market size is poised to reach USD 650 Billion by the end of 2035, growing at a CAGR of 10% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of pumped hydro storage was USD 330 Billion. The reason behind the growth is impelled by the rising initiatives to increase the pumped hydro storage capacity. For instance, The National Energy Administration (NEA) of China announced a mid-term and long-term plan for pumped storage development from 2021 to 2035. According to this proposal, installed pumped storage hydropower capacity in China would be at least 62 GW in 2025, and over 120 GW in 2030. China's existing pumped storage capacity is expected to reach 50 GW by the end of November 2022.
The growing technological developments are believed to fuel the market growth. For instance, an alternate strategy to the traditional pumped-storage hydropower development is being used by Quidnet Energy which is investing in a cutting-edge geo-mechanical pumped-storage (GPS) system that uses wells and other subterranean man-made or natural features for energy storage purposes.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~10% |
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Base Year Market Size (2022) |
~ USD 330 Billion |
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Forecast Year Market Size (2035) |
~ USD 650 Billion |
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Regional Scope |
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Growth Drivers
According to the International Renewable Energy Agency (IRENA), global renewable energy capacity reached 2,799 GW in 2020, with hydroelectric power accounting for a significant portion of it.
Challenges
End-User (Government Agency, Grid Operators, Electricity Utilities)
The electricity utilities segment is estimated to hold 40% share of the global pumped hydro storage market in the coming years owing to the growing capacity of pumped hydro storage for producing more electricity. This allows for greater flexibility improves the grid stability, and enables the storage of more energy as a result more electricity can be produced to meet the high demand.
For instance, lately, there are more than 120 GW of PHS capacity operating globally, accounting for more than 90% of the world's power storage capacity and around 2% of global electricity generation.
Type (Open-Loop, Closed-Loop)
The closed loop segment is set to garner a notable share shortly. Closed-loop pumped hydro storage is more flexible than open-loop and this is the primary reason for the segment’s growth. Closed-loop systems do not require a nearby natural water source, such as a river or lake, as the water is stored and reused within the system. This makes a closed loop suitable for a wider range of locations, including areas that are not in proximity of water bodies, this makes closed-loop easier to implement. Moreover, closed-loop systems are generally more environmentally friendly than open-loop systems. As these systems do not require natural sources hence, less impact is imposed on aquatic environments.
Our in-depth analysis of the global market includes the following segments:
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Type |
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End-User |
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North American Market Forecast
Pumped Hydro Storage market in North America is predicted to account for the largest share of 38% by 2035 impelled by the rising production of electricity from pumped hydro storage. Pumped storage hydropower (PSH) is a well-established and widely used form of energy storage system, accounting for 93% of all utility-scale energy storage capacity in the United States.
Moreover, the present-day hydropower plant pumped storage fleet in the United States contains around 22 gigatons of electricity-generating capacity and 550 gigatons of energy storage, with plants in every area of the country. According to the statistics from the Office of Energy Efficiency & Renewable Energy, America presently has 43 PSH plants and has the capacity to more than double its existing PSH capacity by adding enough additional PSH plants.
APAC Market Statistics
The APAC Pumped Hydro Storage market is estimated to be the second largest, during the forecast timeframe led by higher construction of storage plant. For instance, Guidelines for promoting pumped storage projects (PSPs) in India were recently released by the Ministry of Power as energy storage is aided by technology, and with the rise of renewable energy, the ministry asserts that this technology is a better option. As a result, the demand for pumped hydro storage may rise in the region.
According to data from 2022, there are currently more than 2 GW of pumped storage projects (PSPs) being built in India, while there are over 22 GW of such projects in various phases of development.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: Rising initiatives to increase the pumped hydro storage capacity and the growing technological developments are the major factors driving the growth of the market.
Ans: The market size of Pumped Hydro Storage is anticipated to attain a CAGR of 10% over the forecast period, i.e., 2023 – 2035.
Ans: The major players in the market are GE Renewable Energy, Siemens Energy, Enel SpA, Duke Energy Corporation, Voith GmbH & Co. KGaA, Genex Power Limited, Toshiba Energy System & Solutions Corporation, Greenko Energy, Eskom Holdings SOC Ltd.
Ans: The electricity utilities segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
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