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

Posted on May 22, 2025 By Dante No Comments on Pumped Hydro Storage is Not the Silver Bullet for Renewable Energy – Here’s Why

When it comes to renewable energy storage, pumped hydro storage (PHS) is often touted as the holy grail. It’s the go-to solution for utilities and energy experts looking to balance the grid and make the most of intermittent sources like solar and wind. But is PHS really the answer to our energy storage prayers? I’d argue that, while it’s a crucial technology, it’s not the silver bullet many make it out to be.

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Let’s start with the basics. PHS works by pumping water from a lower reservoir to an upper reservoir during off-peak hours when energy is plentiful, and then releasing it back to the lower reservoir during peak hours when energy is in high demand. This process allows PHS to generate electricity by driving turbines, effectively storing energy for later use. Sounds simple enough, but it’s not without its limitations.

One major issue is the geographical constraints. PHS requires a significant elevation difference between the two reservoirs, which can be difficult to find in many parts of the world. This limits the technology’s deployment to certain regions, making it less accessible to areas that need it most. For instance, countries with flat or low-lying terrain, like the Netherlands or Bangladesh, are unlikely to benefit from PHS.

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Another shortcoming is the high upfront costs. Building a PHS system can be prohibitively expensive, with costs ranging from $1,000 to $3,000 per kilowatt-hour (kWh) of storage capacity. This makes it challenging for utilities to justify the investment, especially when compared to other forms of energy storage like batteries or compressed air energy storage (CAES). CAES, for example, can cost as little as $200 per kWh, making it a more affordable option for many projects.

Furthermore, PHS is not as flexible as other energy storage technologies. Once a PHS system is built, it’s relatively inflexible in terms of capacity and discharge rates. This means that utilities can’t easily scale up or down to meet changing energy demands, which can be a problem during periods of high variability in renewable energy output.

Lastly, there’s the environmental impact. While PHS itself is a relatively clean technology, the construction of a PHS system requires significant land acquisition, infrastructure development, and water diversion. This can lead to habitat disruption, water quality degradation, and other ecological concerns.

In contrast, other energy storage technologies like batteries and CAES are more adaptable, flexible, and environmentally friendly. They can be deployed in a wider range of locations, including urban areas, and can be easily scaled up or down to meet changing energy demands.

So, what does this mean for the future of PHS? It’s not that PHS is obsolete or unnecessary. Rather, it’s that it’s one of many energy storage technologies that can be used to support the grid. Utilities and energy experts should consider a portfolio approach to energy storage, combining PHS with other technologies to create a more resilient and adaptable energy system.

In conclusion, while PHS is an important technology for renewable energy storage, it’s not the silver bullet many make it out to be. Its geographical constraints, high upfront costs, inflexibility, and environmental impact make it less appealing than other options. By considering a more nuanced approach to energy storage, we can create a more sustainable and reliable energy system for the future.

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