PUBLISHER: The Business Research Company | PRODUCT CODE: 1436629
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436629
Pumped hydro storage involves structures that transfer water-based energy from one reservoir to another at a lower height. This method stands out as one of the few large-scale, cost-effective approaches for storing and distributing electricity, contributing to increased grid dependability.
Pumped hydro storage comes in two main types open-loop and closed-loop. Open-loop pumped hydro storage entails a continuous hydrologic connection to a natural body of water, utilizing sources such as natural and man-made reservoirs. Government agencies, grid operators, and electricity utilities commonly employ these storage systems.
The pumped hydro storage market research report is one of a series of new reports from The Business Research Company that provides pumped hydro storage market statistics, including pumped hydro storage industry global market size, regional shares, competitors with a pumped hydro storage market share, detailed pumped hydro storage market segments, market trends and opportunities, and any further data you may need to thrive in the pumped hydro storage industry. This pumped hydro storage market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The pumped hydro storage market size has grown strongly in recent years. It will grow from $378.79 billion in 2023 to $412.08 billion in 2024 at a compound annual growth rate (CAGR) of 8.8%. The growth observed in the historic period can be attributed to several factors, including the demand for energy storage solutions, the emphasis on grid stability and reliability, the integration of renewable energy, dynamics in the electricity market, and the expansion of hydropower.
The pumped hydro storage market size is expected to see strong growth in the next few years. It will grow to $579.72 billion in 2028 at a compound annual growth rate (CAGR) of 8.9%. The anticipated growth in the forecast period can be attributed to various factors, including the expansion of renewable energy capacity, a heightened focus on decentralized energy systems, ongoing energy transition and electrification efforts, integration with variable renewable sources, and the adoption of hybrid energy storage systems. Major trends expected in the forecast period encompass advancements in storage technologies, a rise in the deployment of pumped hydro storage, increased emphasis on energy transition and grid balancing, progress in pumped storage technologies, the global expansion of pumped storage projects, and market trends related to retrofits and upgrades.
The anticipated growth in the pumped hydro storage market is closely linked to the rising demand for electricity. This demand surge is driven by factors such as increasing prosperity and heightened commercial activities, contributing to annual growth in electricity consumption. Pumped hydro storage facilities generate electricity by allowing water to flow through a turbine generator. As a result, the growing demand for electricity is expected to propel the pumped hydro storage market. For example, a report from the International Energy Agency (IEA) in February 2022 highlighted that the global economic recovery is anticipated to lead to a nearly 5% increase in worldwide electricity demand in 2021 and a 4% rise in 2022. Additionally, data from the Energy Information Administration in April 2023 revealed a 2.6% increase in total US electricity consumption, reaching 4.05 trillion kWh in 2022. Hence, the upward trend in electricity demand is a key driver for the pumped hydro storage market.
Another significant factor contributing to the growth of the pumped hydro storage market is the escalating demand for renewable energy. Renewable energy, derived from replenishable natural resources such as sunlight, wind, rain, tides, and geothermal heat, is gaining prominence. Pumped hydro storage plays a crucial role in supporting the integration of renewable energy by addressing variability challenges and enhancing grid reliability for sustainable growth. For instance, a report from gov.uk in December 2023 highlighted the increasing share of renewable energy production in the UK, accounting for 44.5% of electricity generation in the third quarter of 2023. Therefore, the growing demand for renewable energy is a significant driver for the pumped hydro storage market.
Technological advancement stands out as a prominent trend gaining popularity in the pumped hydro storage market. Major companies in this sector are dedicated to developing innovative technologies to reinforce their market positions. An example of such innovation occurred in February 2023 when Hitachi Energy Ltd., a US-based power technology company, introduced SFC, a static frequency converter solution utilizing modular multi-level technology for a pumped hydro storage plant in Europe. This technology boasts a unique feature, reducing power losses, enhancing revenue, and facilitating the grid integration of additional solar and wind power, contributing to a more sustainable energy future. By improving plant efficiency and stabilizing the grid, this technology is transforming the global energy system towards one that is more secure, adaptable, and sustainable.
Strategic collaborations are another significant aspect of major companies in the pumped hydro storage market. These collaborations are pivotal for advancing pumped hydro storage technologies, expanding market reach, mitigating risks, and ensuring successful development and integration into the broader energy landscape. An illustrative example is the partnership between Adani Group, an India-based multinational conglomerate, and Greenko Group, an India-based renewables company, announced in August 2023. This collaboration signifies their joint commitment to large-scale renewable energy integration. Greenko is set to provide up to 1GW of firm and dispatchable renewable energy, including round-the-clock power, to Adani's proposed industrial complex. The initiative aims to establish a green industrial complex, with Greenko contributing 6 GWh of long-duration hydro storage capacity from its 'Off-Stream Closed-Loop Pumped Storage Project' in Madhya Pradesh and Rajasthan.
In February 2023, TransAlta Corporation, a Canada-based electricity power generator, acquired a 50% stake in Montem Resources Limited's 4.8GWh pumped hydro energy storage development project for an undisclosed amount. This acquisition is anticipated to enhance the reliability of the Alberta grid with increased capacity and duration, complementing TransAlta with a share of Tent Mountain's land rights, fixed assets, and intellectual property. Montem Resources Limited is an Australia-based developer of renewable energy, including pumped hydro storage projects.
Major companies operating in the pumped hydro storage market report are The EDF Group, Enel Group, Electricite de France SA (EDF), Hitachi Energy Ltd., General Electric Co, Iberdrola SA, Mitsubishi Heavy Industries Ltd., Siemens Energy AG, ABB Ltd., Duke Energy Corporation, Chubu Electric Power Company Inc., Statkraft AS, Eskom, Genex Power Limited, Alstom Pvt Ltd., Andritz Group, Dongfang Electric, Voith GmbH & Co KGaA, China Three Gorges Corporation, Snowy Hydro Limited, Northland Power, Ansaldo Energia SpA, Greenko Group, EON SE, Toshiba Energy System & Solutions Corporation, San Diego County Water Authority, RusHydro, FirstLight Power, Schluchseewerk, Gridflex Energy, National Grid PLC, NextEra Energy Inc.
Asia-Pacific was the largest region in the pumped hydro storage market in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the pumped hydro storage market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the pumped hydro storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The pumped hydro storage market includes revenues earned by entities by constructing dam and reservoir based pumped hydro storage plant. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Pumped Hydro Storage Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on pumped hydro storage market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for pumped hydro storage ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The pumped hydro storage market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.