Market Dynamics

Pumped hydroelectric storage (PHS) facilities store energy in the form of water in an upper reservoir pumped from another reservoir at a lower elevation. During high electricity demand, power is generated in the same way as a conventional hydropower station by releasing the stored water through turbines. The upper reservoir is recharged during periods of low demand by using low-cost grid electricity to pump the water back to the upper reservoir. The main challenge in maintaining reliability is that there is no shelf life for electricity and when required, it must be produced. Electricity demand is constantly changing, particularly between daytime peak demand periods and night time periods. Due to the technology-cost gap of other storage technologies and factors, such as the growing penetration of renewables, the demand for pumped hydro is growing globally. With countries focusing on energy storage, pumped hydro storage has become the most sought after energy storage solution. Moreover, pumped hydro storage is now the only energy storage solution feasible to be deployed at a very large scale. Global initiatives towards harnessing renewable energy, supportive government policies, and increasing adoption of energy storage are expected to drive the market.

Segment Insights

Based on type, the pumped hydro storage market has been segmented into open-loop and closed-loop. The open-loop type segment is leading the pumped hydro storage market. Ease of compatibility with a hydropower plant coupled with availability of natural flowing water stream will positively influence the product demand. As per DOE, the US has approximately 3 open-loop projects, which are under construction.

North America is expected to be the fastest-growing market for pumped hydro storage during the forecast period. The PHS is the largest form of energy storage technology in North America, which majorly helps in providing load balance. There are 40 existing pumped storage projects in the US providing over 22,000 MWs of storage, with largest projects in Virginia, Michigan, and California (Bath County, Ludington, and Helms, respectively). At present, there are 51,310 MWs representing over 60 pumped storage projects in the FERC queue for licensing and permitting. Further, Canada, which ranks fourth in the world for hydropower development, with over 81.478 GW of installed capacity by the end of 2017 (including 174 MW of pure pumped storage), is one of the most potential global hotspots for the pumped hydro storage market. Canada’s only PHS facility is Ontario Power Generation’s Sir Adam Beck Pump Generating Station. The 174 MW facility pumps water from the Niagara River into a 300-hectare reservoir for energy storage. With more projects under construction, Canada is expected to witness a huge growth in PHS capacity during the forecast period.

Asia Pacific is expected to account for a prominent share of the pumped hydro storage market, mainly due to China installing more new hydropower capacity plants than any other country in 2017, putting 9.1 GW into operation, including 1.8 GW of pumped storage. This, however, does represent a slowdown in China’s new development, when compared to 11.7 GW new capacity installed in 2016 and 19.4 GW in 2015. According to the China Energy Storage Alliance’s (CNESA), by the end of 2017, China’s total operational energy storage capacity totaled 28.9 GW, an increase of 19% from the previous year. Pumped hydro energy storage accounted for the majority of this capacity, at nearly 99%. With more projects to be operational over the next five years, China is expected to retain its leading position in the market.

Key Factors Impacting Market Growth:

• Growing penetration and popularity of renewable energy
• The technology-cost gap of other storage technologies
• Global initiatives towards harnessing renewable energy and supportive government policies

Key Developments:

• In October 2014, the Chinese Government signed a deal with pumped hydro storage market giant, Alstom (France). The Hainan Pumped Storage Power Generation Co. Ltd (China) granted USD 71.14 million contracts to Alstom for establishing a 600 MW pumped storage hydropower plant.
• In August 2017, Israel signed a contract with GE Renewable Energy (France) to construct a hydro pumped storage station of 344 MW capacity. Under the contract, GE Renewable Energy will design, develop, supply, and install all hydro-mechanical and electro-mechanical equipment required for the plant. In addition, GE has also signed a long-term agreement for maintaining and covering all power plant operations.
• In January 2018, San Diego County Water Authority decided to develop 500 MW hydropower energy storage project at the San Vicente Reservoir near Lakeside in San Diego County. Black & Veatch (US) has been selected to serve as the owner’s representative for the energy storage facility. The pumped hydro energy storage solution would support operations on the power grid and allow significant and sustained integration of renewable wind and solar energy into the power supply mix.

Regional Outlook:

The regional outlook for pumped hydro storage market provides detailed information for markets including North America, Western Europe, Eastern Europe, Asia Pacific, Middle East, and Rest of the World. North America and Western Europe are estimated to be key regions for pumped hydro storage market during the forecast period. Being one of the industrialized regions, the energy & power sector is key to the operations of various industries in this region. This is one of the important factors governing the growth of pumped hydro storage market in these regions. Some of the major countries covered in this region include US, Germany, UK, France, Italy, Canada, and so on. 

Asia Pacific is estimated one of the fastest growing regions for pumped hydro storage market during the forecast period. Some of the fastest growing economies and increasing demand for energy & power to cater high population & industries is expected to drive the demand in this region. China and India are projected to register major demand during the forecast period. Middle East that includes UAE, Saudi Arabia, Iran, Qatar, and others promises high market potential during the forecast period. Rest of the World including South America and Africa are emerging regions in terms of market demand during the forecast period.

Companies Covered: ABB Ltd., General Electric Co., Doosan Corp., Mitsubishi Electric Corporation, Duke Energy Corp., Chubu Electric Power Company Inc., Électricité de France SA (EDF), Enel SpA, Energia de Portugal SA, Iberdrola SA, and Tokyo Electric Power Company Holdings

Market Segmentation:

By Type:

• Open-Loop
• Closed Loop

By Region:

• North America
  • By Country (US, Canada, Mexico)
  • By Type
• Western Europe:
  • By Country (Germany, UK, France, Italy, Spain, Rest of Western Europe)
  • By Type
• Eastern Europe:
  • By Country (Russia, Turkey, Rest of Eastern Europe)
  • By Type
• Asia Pacific
  • By Country (China, Japan, India, South Korea, Australia, Rest of Asia Pacific)
  • By Type
• Middle East:
  • By Country (UAE, Qatar, Iran, Saudi Arabia, Rest of Middle East)
  • By Type
• Rest of the World
  • By Region (South America, Africa)
  • By Type

Reasons to Buy This Report:

• Market size estimation of the global pumped hydro storage market on a regional and global basis
• The unique research design for market size estimation and forecast
• Profiling of major companies operating in the market with key developments
• Broad scope to cover all the possible segments helping every stakeholder in the market

Customization:

We provide customization of the study to meet specific requirements:

• By Segment
• By Sub-segment
• By Region/Country

For more information, contact: [email protected]