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Pumped Hydro Storage is a Goliath in the Renewable Energy World, But Can it Keep Up with the Times?

Posted on May 21, 2025 By Dante No Comments on Pumped Hydro Storage is a Goliath in the Renewable Energy World, But Can it Keep Up with the Times?

For decades, pumped hydro storage (PHS) has been the unsung hero of the renewable energy world. This tried-and-true technology has been the go-to method for storing excess energy generated by power plants, particularly those fueled by solar and wind. But as the energy landscape continues to evolve, can PHS keep up with the times? Or is it a relic of the past, holding back the growth of a more efficient and innovative energy sector?

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Let’s face it, PHS has been around since the 1900s, and its basic principle remains the same: excess energy is used to pump water from a lower reservoir to an upper reservoir during off-peak hours, and then the water is released to generate electricity during peak hours. It’s a straightforward, reliable, and effective system, but also a relatively expensive one – especially when compared to newer, more agile energy storage technologies like batteries.

Despite its limitations, PHS remains the largest form of energy storage in operation today, accounting for over 90% of the world’s total energy storage capacity. But that’s precisely the problem. As the renewable energy market continues to grow, the demand for more flexible and scalable energy storage solutions is increasing. PHS, with its rigid infrastructure and limited geographical suitability, can’t keep up.

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Take, for example, the recent surge in battery energy storage installations. In 2020, battery storage capacity grew by an astonishing 40%, outpacing PHS for the first time. The trend is expected to continue, with many industry experts predicting that batteries will become the dominant form of energy storage within the next decade. Meanwhile, PHS is struggling to adapt, with new projects facing significant costs and logistical challenges.

So, what’s behind the disconnect between PHS and the modern energy landscape? One major reason is the limitations of scale. PHS requires massive infrastructure investments, including substantial land acquisition, engineering, and construction costs. Moreover, its geographical suitability is limited to areas with significant elevation changes, which can be a major constraint in regions with flat terrain.

Another challenge facing PHS is the issue of location. Traditional PHS plants are often located far from population centers, which can compromise grid resilience and increase transmission losses. In contrast, newer energy storage technologies like batteries can be deployed closer to consumption hubs, reducing transmission costs and improving grid stability.

Despite these challenges, PHS still has a role to play in the transition to a more sustainable energy system. In fact, many experts believe that PHS can be a valuable complement to other energy storage technologies, providing a long-duration, baseload power source that can help stabilize the grid during periods of high demand.

So, what’s the way forward for PHS? One solution is to integrate PHS with other energy storage technologies, creating hybrid systems that can leverage the strengths of both technologies. Another approach is to explore new and innovative applications for PHS, such as using it to store energy from renewable sources like tidal or wave power.

In conclusion, while PHS may not be the most agile or scalable energy storage technology, it remains an essential part of the renewable energy ecosystem. By acknowledging its limitations and exploring new ways to deploy and integrate PHS, we can ensure that this tried-and-true technology continues to play a vital role in the transition to a more sustainable energy future.

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