Pumped Hydro Storage Market to Grow Rapidly

The pumped hydro storage market involves converting potential energy

The pumped hydro storage market involves converting potential energy of water into stored hydroelectricity by using excess wind or solar electricity to pump water from a lower basin to a higher elevation basin, which can then be released to drive turbines and generate electricity as needed. Pumped hydro storage provides economical bulk energy storage and plays a crucial role in balancing the intermittency of renewable energy resources like wind and solar by storing excess electricity generated from them and supplying it when their generation is low. The increasing global focus on transitioning to cleaner energy has driven immense investments in renewable energy. With more renewable energy capacities coming online, the need for energy storage to balance supply and demand has also increased considerably. This growing demand for large-scale energy storage from the renewable energy sector is estimated to drive the pumped hydro storage market at a high CAGR over the coming years.

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.

Key Takeaways

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.

The rising share of renewable sources in the global energy mix and the related energy storage needs have led to burgeoning demand for Pumped Hydro Storage Market Size solutions in recent years. Various governments around the world have announced ambitious targets for installing renewable energy capacities and have introduced supportive policies and incentives to achieve the targets, which is expected to further propel the demand for pumped hydro storage. Technological advancements are also aiding the growth of the pumped hydro storage market through innovations improving the round-trip efficiency, operational life, and automation of systems.

Market Trends

One of the key trends in the pumped hydro storage market is the increasing use of advanced technologies like artificial intelligence, digitalization, and automation to enhance performance and reduce operating costs of systems. Another major trend is the development of new hybrid energy storage plants combining multiple storage technologies like pumped hydro storage, batteries, and hydrogen storage to optimize energy storage capacity and flexibility.

Market Opportunities

Development of offshore pumped hydro storage facilities by utilizing excess offshore wind capacity offers a major opportunity. Retrofitting existing hydropower dams and reservoirs with pumping capabilities also presents a significant opportunity to drastically increase global pumped hydro energy storage capacity. Widening applications in industrial sectors like data centers, manufacturing, and shipping due to growing demand for round-the-clock power supply without emissions is another key market opportunity.

Impact of COVID-19 on Pumped Hydro Storage Market Growth
The outbreak of COVID-19 pandemic has impacted the growth of pumped hydro storage market. During the initial stages of lockdown, demand for electricity reduced significantly due to shutdown of manufacturing industries and offices. This led to reduction in demand for large scale energy storage using pumped hydro technology. However, with relaxation of lockdown measures and resumption of economic activities, demand is expected to rebound. Still challenges persists in supply chain and procurement of equipment.

Geographical Regions with High Concentration in Pumped Hydro Storage Market
Currently, Europe accounts for the largest share in global pumped hydro storage market in terms of value. Countries like Switzerland, Norway, Italy, France and Austria have high dependence on pumped hydro for flexible and reliable grid operations. Asia Pacific is the fastest growing region due to increasing renewable energy installations in China, India and Japan which require energy balancing solutions. North America is another major regional market driven by capacity additions in the US.

With supportive policies and economic investments, Africa region is emerging as an attractive market for pumped hydro especially countries around the Nile River and Grand Ethiopian Renaissance Dam project. Latin America is also witnessing rise in energy storage projects integrating hydropower capabilities of countries like Brazil and wind-solar capabilities of Chile. Overall, developing regions with abundant hydro resources and renewable energy potential will drive future growth in the pumped hydro storage industry.

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