February 22, 2024

Pumped Hydro Storage Market is Expected to Witness High Growth Owing to Rising Demand for Clean and Reliable Energy Sources

Pumped hydro storage utilizes potential and kinetic energy for electricity generation and storage. It operates by moving water between two reservoirs at two different elevations. When electricity demand is low, excess electricity is used to pump water to the upper reservoir. Later, during periods of peak demand, the stored water is released through turbines to generate electricity. This process allows load shifting from off-peak to peak demand periods and provides various grid benefits including renewable energy integration, capacity firming, and ancillary services.

The global pumped hydro storage market is estimated to be valued at US$ 401.19 Bn in 2024 and is expected to exhibit a CAGR of 7.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Rising Demand for Clean and Reliable Energy Sources

As the share of variable renewable energy continues to increase globally, there is a need for energy storage technologies that can store excess renewable energy produced during off-peak periods and discharge it when the sun is not shining or wind is not blowing. Pumped hydro storage provides grid-scale energy storage at utility-level and ensures uninterrupted supply of clean energy.

Additionally, pumped hydro storage is a mature and proven large-scale energy storage technology that has a long lifetime of over 100 years. It plays a vital role in decarbonizing the power sector by facilitating higher penetration of zero-carbon renewable energy while maintaining grid stability and reliability. This, along with supportive government policies and regulations promoting renewable energy adoption, is estimated to drive the growth of the global pumped hydro storage market over the forecast period.

SWOT Analysis

Strength: Pumped Hydro Storage provides large-scale energy storage by using existing reservoirs and infrastructure. It allows for electricity generation when demand is highest and prices peak. Pumped hydro accounts for over 95% of global energy storage capacity.

Weakness: Initial investments for pumped hydro projects are capital intensive due to their large civil infrastructure requirements. Large land areas and water resources are also required which can impact the environment and ecosystems. Changes in precipitation patterns due to climate change may reduce the long-term viability of some facilities.

Opportunity: Growth in renewable energy adoption is driving demand for energy storage solutions to manage intermittency. Pumped hydro supports increasing shares of variable wind and solar power on the grid. Developing new advanced pumped storage hydropower technologies can further reduce costs and environmental impacts.

Threats: Competing energy storage technologies like lithium-ion batteries are gaining traction due to declining costs. Strict environmental regulations and public opposition can delay new pumped hydro projects. Hydrological uncertainties from climate change may hamper output from some facilities.

Key Takeaways

The Global Pumped Hydro Storage Market Size is expected to witness high growth. The global pumped hydro storage market is estimated to be valued at US$ 401.19 Bn in 2024 and is expected to exhibit a CAGR of 7.6% over the forecast period 2024 to 2031.

Asia Pacific region currently dominates the market owing to high investments in renewable energy and rapid industrialization in China, India, and Japan. These countries are investing heavily in new pumped hydro facilities to support increasing electricity demand while integrating more renewables in their energy mix.

Key players operating in the Pumped Hydro Storage market are AbbVie Inc. (Allergan), Terumo Corporation, GlaxoSmithKline PLC, Novartis AG, Medtronic PLC, Abbott Laboratories, Boston Scientific Corp., W L Gore and Associates Inc., Stryker Corporation, and Becton, Dickinson and Company

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it