by The Pumped Hydro Storage Market is estimated to be valued at US$ 348.25 Bn or Mn 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 Overview:
Pumped hydro storage refers to a large-scale hydroelectric energy storage method that works by moving water between reservoirs at different elevations. It stores energy by pumping water from a lower reservoir to a higher storage reservoir during periods of low energy demand, and releases water back through a turbine during periods of higher demand. Pumped hydro storage plays a key role in energy storage for intermittent renewable sources such as solar and wind farms. It provides load balancing services and ensures grid reliability and stability.
Market Dynamics:
Increased investments in renewable energy infrastructure is a major driver for the pumped hydro storage market. Renewable energy sources such as solar and wind power provide intermittent energy, creating an urgent need for affordable, large-scale energy storage systems. Pumped hydro storage helps balance the variability of renewable power generation and improves grid stability. For instance, according to the International Renewable Energy Agency (IRENA), over 40% of utility-scale battery storage is set to come from pumped hydro energy storage by 2030.
The second driver is capacity expansion of existing pumped hydro facilities. Due to the aging infrastructure of many existing pumped hydro plants, operators are undertaking major refurbishment and modernization programs to upgrade equipment and expand capacities. For example, in 2021, ENEL announced plans to invest over €5 billion by 2030 for the upgrade and expansion of its existing pumped hydro facilities in Italy, Spain, Portugal and Chile. Such initiatives are expected to significantly boost the operational capacities of pumped hydro energy storage plants worldwide over the coming years.
Segment Analysis
The pumped hydro storage market is segmented based on application into seawater, freshwater, and underground/sub-surface. The freshwater segment dominates the market due to the wide availability of freshwater reservoirs, which helps reduce dependency on fossil fuels. This segment possesses around 95% of the total market share as several freshwater sites can be reused as a hydroelectric reservoir and power station.
PEST Analysis
Political: Favorable government policies and regulations pertaining to renewable energy sources across countries are boosting market growth. Many governments provide subsidies for increasing renewable energy sources.
Economic: Rising electricity demand along with the need for energy storage solutions is fueling market revenue. Pumped hydro storage offers affordable power generation during peak hours.
Social: Growing cognizance about climate change and sustainable development is propelling the adoption of pumped hydro storage systems for reducing carbon emissions.
Technological: Advanced hydraulic turbines and generators are improving the round-trip efficiency. Adoption of artificial intelligence and IoT is helping optimize operations.
Key Takeaways
The global Pumped Hydro Storage Market Share is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing demand for large-scale energy storage driven by intermittent renewable sources like solar and wind. The market size for 2023 is estimated to be US$ 348.25 Bn.
Regional analysis
Asia Pacific dominates with over 40% share attributed to growing investments in renewable projects in China, India, and Japan. Europe holds the second largest share led by countries including Germany, France, and Switzerland increasingly adopting pumped storage hydro power.
Key players
Key players operating in the pumped hydro storage market are Operators (Duke Energy Corporation, EON SE, Enel SPA, and Electricite de France SA, and Iberdrola SA) and Technology Providers (General Electric Company, Siemens AG, Andritz AG, Mitsubishi Heavy Industries, Ltd, Voith GmbH & Co. KGaA, and Ansaldo Energia SpA). Operators such as Iberdrola SA are investing heavily in new projects across regions to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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