Pumped Hydro Storage Market Analysis

The global pumped hydro storage market size was valued at USD 330.00 billion in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 7.18% from 2022 to 2030. The market for pumped hydro storage systems is growing at a fast rate. The increasing demand for flexible energy sources is driving the installation of new projects. In addition, the demand for renewable energy is growing rapidly. As renewable energy sources become more prevalent, more governments are implementing programs to support renewable sources. Stringent government regulations are also driving the renewable energy market growth, this in turn augmenting PHS market growth. Other factors contributing to market growth include the implementation of new government targets that aim to reduce carbon emissions. These initiatives will further boost the market's adoption of PHS technology

Global Pumped Hydro Storage Market: Regional Insights

Regionally, North America is projected to hold leading position in the global pump hydro storage market over the forecast period owing to the increasing installment of pumped hydro storage capacity in the region. According to the Coherent Market Insights analysis, as of 2020, North America has 23.03 GW of pumped hydro storage capacity, most of which is concentrated in the United States. This is primarily attributed to the nation’s large hydropower capacity, around 102 GW, as of 2020.  Though Canada also sits on a massive capacity of 82 GW of hydropower capacity, the country is yet to fully utilize its pumped hydro storage capacity since they only have 117 MW of the discussed technology.

Europe is projected to hold second leading position in the global market over the forecast period owing to the increasing developments associated with the pumped hydro storage in the region. Moreover, the 2020 years presented a key milestone toward decarbonization in the European Union, as all renewable sources together generated more electricity than conventional fuels for the first time.

Figure 1. Global Pumped Hydro Storage Market Share (%) in terms of Value, By Region, 2021

Global Pumped Hydro Storage Market Drivers:

Increasing integration of renewable energy sources and growing focus on ensuring grid stability are prime factors augmenting growth of the global pump hydro storage market. According to International Renewable Energy Agency, as of 2020, global renewable energy capacity stood at 2799.09 GW, of which wind energy accounted for 733.27 GW (26.2%), and solar energy accounted for 713.97 GW (25.5%) of the total installed capacity.

Factor such as lowest lifecycle costs among commercially viable EST technologies is again projected to augment growth of the market. For instance, as of 2020, PHS projects have the lowest lifecycle cost per unit of energy generated among all other commercially viable ESTs.

Global Pumped Hydro Storage Market Opportunities:

Increasing development of novel PSH technologies is projected to provide significant growth opportunities for market over the forecast period. For instance, the development of seawater-based PSH projects is a major development opportunity for the PSH market. Seawater-based PSH systems use ocean saltwater for pumped storage plants with the ocean as the lower reservoir, minimizing consumption of freshwater.

In developing countries there is a growing focus towards becoming carbon neutral which is projected to hold significant opportunities. For instance, China announced its plan to become carbon neutral by 2060 and peak coal consumption by 2025. This led to increased investment in the renewable sector, and in 2020, around 13.76 GW of new hydropower was installed, including 1.2 GW pumped storage from the last four units of the Jixi project.

Pumped Hydro Storage Market Report Coverage

Report Coverage	Details
Base Year:	2021	Market Size in 2021:	US$ 330.00 Bn
Historical Data for:	2017 to 2020	Forecast Period:	2022 to 2030
Forecast Period 2022 to 2030 CAGR:	7.18%	2030 Value Projection:	US$ 613.86 Bn
Geographies covered:	North America: U.S. and Canada Latin America: Brazil, Argentina, Mexico, and Rest of Latin America Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific Middle East: GCC Countries, Israel, and Rest of Middle East Africa: South Africa, North Africa, and Central Africa
Segments covered:	By Type: Open-Loop, Closed-Loop
Companies covered:	Operators (Duke Energy Corporation, EON SE, Enel SPA, and Electricite de France SA, and Iberdrola SA) Technology Providers (General Electric Company, Siemens AG, Andritz AG, Mitsubishi Heavy Industries, Ltd, Voith GmbH & Co. KGaA, and Ansaldo Energia SpA)
Growth Drivers:	Increasing integration of renewable energy sources growing focus on ensuring grid stability
Restraints & Challenges:	Increasing adoption of alternative energy storage technologies Environmental and social impact of PHS projects

Global Pumped Hydro Storage Market Trends:

Increasing number of renewable sources across developing region is emerging as a major trend in the market. In 2020, the total renewables (including hydropower) in the Middle East & African region was 229 TWh, accounting for about 11% of the total region's electricity generation. It has witnessed a growth of 3% compared to 2019, majorly contributed by hydropower.

Growing launch of new product due to ongoing technological advancement is another major trend observed in the market. For instance, in February 2021, RheEnergise develops pumped-hydro technology to store clean power.

Global Pumped Hydro Storage Market Restraints:

Increasing adoption of alternative energy storage technologies is projected to be a significant restraint for the global pumped hydro storage market over the forecast period. The main competitor to the PHS is lithium-ion battery technology.

Environmental and social impact of PHS projects is projected to be another key restraint for the market. Large GWh-sale projects have land footprint and also require the evacuation and rehabilitation of indigenous populations.

Figure 2. Global Food Grade Phosphoric Acid Market Share (%), By Grade, 2021

Global Pumped Hydro Storage Market Segmentation:

The global pumped hydro storage market report is segmented into type and geography

Based on type, the market is segmented into open-loop and closed-loop. Out of which, open-loop is expected to dominate the global market over the forecast period and this is attributed to the high adoption of open-loop pump projects across developed countries. According to the International Hydropower Association, by the end of 2020, Europe had a significant number of open-loop pumped hydro storage projects, and India had a total of eight operational open-loop pumped hydro storage projects, with a total power generation capacity of more than 2.5 GW.

Closed-loop segment is also expected to witness significant growth in the near future and this is owing to their high reliability, flexibility, and high-power output.

Global Pumped Hydro Storage Market: Key Developments

1. In April 2020, Enel Green Power was awarded 68 MW of new renewable capacity for two wind projects and 38.3 MW of nominal capacity from the repowering of operational hydroelectric plants in the second renewable auction launched by Italian state- owned energy service company GSE (Gestore Servizi Energetici).
2. The company participated in the 500-MW tender for new wind and solar projects and the 98.5-MW tender for renovations of renewable plants with a capacity exceeding 1 MW.
3. In August 2021, Enel announced that they will acquire ERG’s hydropower plants in Italy for 1bn Euros. The acquisition included 19 hydro plants, seven micro hydro plants, seven large dams, and four reservoirs.
4. In April 2021, Électricité de France SA (EDF) and Uzbekistan’s state hydropower producer,  Uzbekhydroenergo,  announced that  they  plan  to  sign  a  formal  memorandum  of understanding  and  create  a  200MW  pumped-hydro facility along with floating PV plants in Uzbekistan.
5. In October 2021, Electricite de France SA (EDF), one of the world's leading power sector companies headquartered in Paris, and NTPC Ltd, India's largest energy integrated company, signed a Memorandum of Understanding (MoU) in collaboration to  explore  potential  power  project development opportunities in the Middle East, Asia, Europe, and Africa.
6. In July 2020, GE Renewable Energy signed two hydropower contracts in the United States, one for FirstLight’s Northfield Mountain project (design, supply, and installation of 4 x 292 MW pumped hydro storage station).
7. In August 2020, GE Renewable Energy signed an agreement with Walcha Energy to accelerate 500MW Dungowan pumped hydro storage project in New South Wales (NSW), Australia.
8. In September 2020, GE Renewable Energy announced supply and commissioning of four 125 MW fixed speed pumped storage turbines for the new Kundah hydropower plant in India.

Global Pumped Hydro Storage Market: Key Companies Insights

The global pumped hydro storage market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global pumped hydro storage market are Operators (Duke Energy Corporation, EON SE, Enel SPA, and Electricite de France SA, and Iberdrola SA) Technology Providers (General Electric Company, Siemens AG, Andritz AG, Mitsubishi Heavy Industries, Ltd, Voith GmbH & Co. KGaA, and Ansaldo Energia SpA)

*Definition: Pumped hydro storage uses water to store energy. A pumped hydro system's effective energy storage capacity is measured in GWh, or gigawatt hours. The volume of water required for a single GWh of energy storage is about a Gigalitre. An off-river pumped hydro system can store as much as 20 GWh of energy.