Pumped Hydro Storage Market size will exceed $350 billion by 2024, as reported in the latest study by Global Market Insights, Inc.
Favorable regulatory framework pertaining to an upgrade and expansion of electrical infrastructure coupled with growing adoption of sustainable energy will drive the size of the pumped hydro storage (PHS) market. Lack of efficient monitoring system and frequent supply outages across the developing economies will further stimulate demand. The China National Energy Administration in 2017 declared a funding of USD 326.4 billion toward the expansion of renewable electrical network by 2020.
The ongoing expansion of micro-grid networks favored by the rapid development of distributed generation technology will propel the pumped hydro storage market size. Growing concerns toward reduction of CO2 along with upgrading and expanding existing PHS system to enhance the operational flexibility will propel the business outlook. In 2016, the Government of Canada pledged to reduce emissions by 80% below 2005 levels until 2050.
Japan’s pumped hydro-storage market is set to exceed 30 GW by 2024. Growing concerns toward energy security along with increasing investments toward deployment of grid networks will propel the product landscape. Upsurge across the integration of renewable energy technologies will further stimulate the business outlook. The Japan Ministry of Economy has announced investments worth $700 million in line with the integration of sustainable energy storage technology across the country.
High storage capacity, energy efficiency, and grid stability are a few parameters that will drive the pumped hydro storage market. According to EASE, the PHS plants have an average efficiency of 70 to 80% when compared with other technologies. Increasing energy demand across emerging economies will further foster the business outlook.
The U.S. pumped hydro storage market size for PHS will grow owing to upgrades and refurbishment of the existing grid infrastructure along with rising adoption of advanced grid support system. Integration of clean energy technologies and expansion of microgrids will further embellish the product landscape. China, under its sovereign wealth fund, has proposed an investment of $800 billion across the U.S. infrastructure sector.
Open loop in 2016, accounted for over 90% of the pumped hydro storage market share. The availability of free-flowing water sources along with the effective compatibility with a hydroelectric plant will embellish the product penetration. According to Department of Energy, there are three open-loop projects announced and under construction phase in the U.S.
A growing energy consumption along with an ongoing investments toward modernization of electric grid infrastructure will embellish the South Korea pumped hydro storage market. Favorable government initiatives pertaining to sustainable energy mix will further stimulate the industry outlook. In 2017, The South Korea government has approved a plan to invest $1.67 billion toward development of renewable energy in the country.
Filed Under: Energy storage, Policy