Rising Demand for Large-Scale Energy Storage will drive Growth in the Pumped Hydro Storage Market
Pumped hydro storage utilizes potential and kinetic energy of water to store excess electricity generated during off-peak hours and use it to meet peak demand periods. It involves pumping water from a lower elevation reservoir to a higher elevation one and reversing the process during times of higher energy usage. This helps reduce grid instability and provide backup during outages. Pumped hydro is currently the most widely used form of grid-scale energy storage globally.
The global pumped hydro storage market is estimated to be valued at US$ 1367.68 Mn in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period 2024 To 2031.
Growth is driven by the need for large-scale, cost-effective energy storage solutions to support increasing shares of variable renewable energy like solar and wind in the generation mix. Pumped hydro facilities also help integrate larger amounts of intermittent power without compromising grid reliability or stability.
Key Takeaways
Key players operating in the pumped hydro storage are Thermo Fisher Scientific, Merck KGaA, Danaher Corporation, Lonza Group, Miltenyi Biotec, Takara Bio Group, CellGenix GmbH, FUJIFILM Irvine Scientific, Agilent Technologies, Bio-Techne Corporation, Bio-Rad Laboratories, BD, Charles River Laboratories, Creative Bioarray, Sartorius AG, Novogene Corporation, AGC Biologics, Catalent, WuXi AppTec, ReachBio LLC. The rising Pumped Hydro Storage Market Share of renewables in power grids globally is driving demand for utility-scale energy storage technologies. Technological advancements include upgrades to existing facilities, floating reservoirs, and developments related to closed loop systems for enhanced efficiency.
Market Trends
There is a growing trend of developing new large-scale Pumped Hydro Storage Market Challenges And Opportunities projects to support energy transition targets. Countries worldwide are announcing ambitious plans and investments to ramp up domestic renewable energy production paired with bulk storage capacities. Developing multipurpose facilities that can provide grid, water management and flood mitigation services is helping improve project economics. Hybrid projects combining pumped hydro with other technologies like batteries and hydrogen are gaining traction as well to maximise storage duration and shave off costs.
Market Opportunities
Governments supporting pumped hydro expansion through incentives, reforms and streamlined approvals represent a key growth opportunity. Projects incorporating artificial intelligence and automation can optimise system operations, lower downtimes and boost revenues. Integrating storage into existing hydro assets, converting old mines and quarries, and offshore floating technologies also offer significant potential to augment global energy storage capacities. Investments in grid upgrades enabling greater exchange of reserves across borders will facilitate larger deployments.
Impact of COVID-19 on Pumped Hydro Storage Market:
The COVID-19 pandemic has impacted the growth of pumped hydro storage market. During the pandemic, the lockdowns resulted in decreasing demand for electricity as most industrial and commercial activities came to a halt. This led to oversupply of power from renewable energy sources like solar and wind. As pumped hydro storage facilities help in regulating supply and demand of electricity, their utilization reduced during the peak of pandemic. However, with easing of lockdowns and restart of industries, the demand and utilization of pumped hydro storage facilities is recovering. Governments across various countries are taking initiatives to boost renewable energy generation to reduce reliance on fossil fuels. This will drive higher deployment of pumped hydro storage facilities in post-COVID times to efficiently integrate renewable energy into the grids. The market is expected to grow rapidly as more pumped hydro projects are being planned globally to support increasing renewable capacity. Investment in energy storage technologies will remain a key priority for achieving long term sustainability and climate goals set by different nations.
In terms of value, Europe accounted for the largest share of pumped hydro storage market in 2024 due to large number of operating as well as under-construction projects across countries like Switzerland, Norway, Spain, Italy and France. The region has seen consistent growth in adoption of renewable energy sources which necessitates efficient energy storage solutions to balance supply and demand of electricity. Asia Pacific is projected to be the fastest growing regional market between 2024 To 2031 owing to rising investments to meet growing power demand from industrialization and economic development especially in China and India. Countries in the region are placing strong emphasis on integrating renewable energy to reduce fossil fuel dependence. This is expected to drive significant pumped hydro capacity additions in Asia Pacific in the coming years.
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About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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