by Pumped hydro storage involves pumping water from a lower elevation reservoir to a higher elevation when electricity demand and prices are low and releasing the stored water to drive turbines and generate electricity when demand and prices are higher. This helps in meeting peak electricity demand in an efficient and cost effective manner.
The global Pumped Hydro Storage Market is estimated to be valued at US$ 348.25 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the pumped hydro storage market is the increasing demand for renewable energy storage. With rapid growth in renewable energy generation through wind and solar, there is a need for large-scale energy storage systems that can store excess energy generated during off-peak hours and supply it when demand peaks. Pumped hydro storage is emerging as one of the most viable and economical options to store large amounts of renewable energy and ensure grid stability. It allows renewable energy sources to function even when the wind is not blowing or the sun is not shining. This is driving increasing incorporation of pumped hydro storage facilities with renewable energy projects globally.
SWOT Analysis
Strength: Pumped hydro storage is a mature and reliable large-scale electricity storage technology. It provides grid reliability by enabling storage and dispatch of large amounts of electricity generated by renewable energy sources.
Weakness: Pumped hydro storage power plants require unique and specific topographical features such as a mountain reservoir and lower reservoir. Finding suitable sites for new pumped hydro storage projects is challenging.
Opportunity: Increasing penetration of variable renewable energy provides opportunities for the growth of energy storage including pumped hydro storage. Government policies and incentives favoring renewable energy integration also supports the growth of energy storage.
Threats: Factors such as environmental concerns related to reservoir construction projects pose threats to the growth of new pumped hydro storage capacity addition. Alternative energy storage technologies such as lithium-ion batteries pose competition to pumped hydro storage projects.
Key Takeaways
The Global Pumped Hydro Storage Market Demand is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing penetration of renewable energy sources globally. Pumped hydro storage plays a key role in enabling integration of large-scale renewable energy by providing grid reliability through grid-scale electricity storage capabilities.
Regional analysis: Asia Pacific region is expected to dominate the global pumped hydro storage market during the forecast period. This is attributed to factors such as supportive government policies in countries such as China favoring renewable energy integration along with pumped hydro storage capacity additions. Countries such as India are also expanding their pumped hydro storage capacity to support renewable energy growth.
Key players operating in the pumped hydro storage market include operators such as Duke Energy Corporation, EON SE, Enel SPA, Electricite de France SA, and Iberdrola SA. Technology providers include General Electric Company, Siemens AG, Andritz AG, Mitsubishi Heavy Industries, Ltd, Voith GmbH & Co. KGaA, and Ansaldo Energia SpA. These companies are involved in developing both new as well as retrofitting existing pumped hydro storage projects globally to support renewable energy integration.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
