Pumped hydro storage market size is speculated to witness considerable growth by the end of 2028, attributing to the rising need for clean energy and increasing efforts to reduce the toxic GHG emissions across the globe.

As per the International Hydropower Association, nearly 60% of all renewable electricity is generated by hydropower and the sector accounts for about 16% of total electricity generated from all sources.

The organization suggests that pumped hydropower storage is the world’s largest battery technology, accounting for 94% of installed global energy storage capacity. IHA estimates that pumped hydropower storage capacity is anticipated to surge by 50% to 240 gigawatts by 2030 end.

Pumped hydroelectric storage facilities are highly effective and are proved to be very beneficial in terms of balancing load with the overall power system. Besides, pumped hydro storage units are quite economical owing to peak and off-peak price differentials and their ability to offer critical ancillary grid services.

Introduction of various government policies that seek to reduce the dependency on fossil fuels and the subsequent push towards pumped hydropower technology would greatly support the growth of the industry.

In fact, in 2021, the Indian government announced that it will soon be rolling out a pumped hydro storage policy in the country. In an effort to realize this, the power and renewable ministry has already identified 63 projects with 96 GW capacity.

Overall, the pumped hydro storage industry is categorized into systems and a profitable regional landscape.

Based on the system, the market is bifurcated into open loop, closed loop, and innovative system pumped hydro storage. Out of these, the segment is characterized by innovative pumped hydro storage systems as it is anticipated to account for considerable gains through 2028. This can be ascribed to the availability of probable locations across diverse geographies, in line with the practical construction possibility with necessary study.

Regionally, the industry is diversified into North America, Europe, Middle East and Africa, Asia Pacific, and Latin America. Amongst these, majority of the growth would come from Middle East and Africa. The regional market is poised to accrue considerable gains in the coming years on back of the increasing power demand in the region and lack of effective grid network. As per statistics by World Data, the United Arab Emirates consumes nearly 113.20 billion kWh of energy per year, with an average of 11,445 kWh per capita.