Pumped Hydro Storage Market Growth Drivers and Challenges:
Growth Drivers
- Renewable Energy Integration – The increasing penetration of green energy sources, such as solar and wind, into the power grid requires efficient energy storage solutions to balance supply and demand.
According to the International Renewable Energy Agency (IRENA), global renewable energy capacity reached 2,799 GW in 2020, with hydroelectric power accounting for a significant portion of it.
- Grid Stability and Flexibility - Pumped hydro storage provides grid stability and enhances flexibility by storing excess electricity during periods of low demand and releasing it during peak demand.
Challenges
- Negative Impact on the Environment - Construction of large-scale pumped hydro storage infrastructure leads to various environmental impacts, such as displacement of existing communities, destruction of natural habitats, and changes to water flow and quality. This harms the livelihood of local people living there and thus leads to opposition from local communities and environmental groups. This makes it difficult to receive approvals and permits for the construction and is likely to hamper the pumped hydro storage market growth.
- Lack of Suitable Sites for Hydro Storage
- High Cost of Constructing Dams
Pumped Hydro Storage Market Size and Forecast:
|
Base Year |
2025 |
|
Forecast Period |
2026-2035 |
|
CAGR |
13.1% |
|
Base Year Market Size (2025) |
USD 55.35 billion |
|
Forecast Year Market Size (2035) |
USD 189.56 billion |
|
Regional Scope |
|
Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
In the year 2026, the industry size of pumped hydro storage is estimated at USD 61.88 billion.
The global pumped hydro storage market size was more than USD 55.35 billion in 2025 and is anticipated to witness a CAGR of around 13.1%, crossing USD 189.56 billion revenue by 2035.
The North America pumped hydro storage market is projected to capture a 38% share by 2035, fueled by rising production of electricity from pumped hydro storage and capacity to add more PSH plants.
Key players in the market include Nevada Hydro Corporation, GE Renewable Energy, Siemens Energy, Enel SpA, Duke Energy Corporation, Voith GmbH & Co. KGaA, Genex Power Limited, Toshiba Energy System & Solutions Corporation, Greenko Energy, Eskom Holdings SOC Ltd.
