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Pumped Hydro Storage is Not the Silver Bullet for Renewable Energy – Here’s Why

Posted on May 21, 2025 By Dante No Comments on Pumped Hydro Storage is Not the Silver Bullet for Renewable Energy – Here’s Why

As the world grapples with the transition to renewable energy, pumped hydro storage (PHS) has emerged as a darling solution for many clean energy advocates. The idea of harnessing excess energy from solar panels or wind turbines to pump water up to a reservoir, only to have it flow back down and generate electricity when needed, seems like a no-brainer. But, I’m here to tell you that PHS is not the game-changer we’ve been led to believe.

Learn more: Can Clean Energy Be the Key to a Sustainable Economic Boom?

For one, PHS is a relatively expensive technology. Building a PHS plant requires a significant upfront investment in infrastructure, including a large reservoir, a pump and turbine system, and transmission lines. The cost of constructing a PHS plant can range from $1,000 to $2,000 per kilowatt, compared to $300 to $500 per kilowatt for a solar panel. This makes it a less viable option for many projects, especially those in remote or rural areas where the economic benefits may not justify the cost.

Another issue with PHS is its geographical limitations. To be effective, PHS plants require a large, suitable site with a significant elevation difference between the upper and lower reservoirs. This limits the potential locations for PHS plants, making it difficult to scale up the technology to meet the demands of a growing renewable energy market. In contrast, solar panels and wind turbines can be installed almost anywhere, making them more accessible and flexible.

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Furthermore, PHS has a relatively low round-trip efficiency compared to other forms of energy storage. The process of pumping water up to the reservoir, storing it, and then releasing it to generate electricity incurs energy losses, which can range from 20% to 30%. This means that, in practice, you need to generate more electricity than you actually need to compensate for these losses. In contrast, batteries, like lithium-ion batteries, can achieve round-trip efficiencies of over 90%.

Finally, PHS has a significant environmental impact. Building a PHS plant requires large-scale construction, which can harm local ecosystems and disrupt wildlife habitats. The creation of a new reservoir can also displace communities and alter the natural water cycle, leading to unintended consequences like algal blooms and water scarcity.

So, what’s the alternative? While PHS may not be the silver bullet for renewable energy, it’s still an important technology that can play a role in a diversified energy mix. Instead of relying solely on PHS, we should focus on developing a range of energy storage solutions, each with its unique strengths and weaknesses. This could include batteries, compressed air energy storage, and even hydrogen fuel cells.

The key is to recognize that there is no one-size-fits-all solution for energy storage. By diversifying our energy storage toolkit and selecting the most suitable technology for each project, we can create a more resilient and sustainable energy system that meets the needs of both people and the planet.

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