Global Pumped Hydro Storage Market Is Estimated To Witness High Growth Owing To Increasing Renewable Energy Generation And Grid Stabilization Opportunities
The global Pumped Hydro Storage Market is estimated to be valued at USD 330.00 billion in 2021 and is expected to exhibit a CAGR of 7.18% over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
The pumped hydro storage market involves using the potential energy of water to store electricity. This technology involves pumping water from a lower reservoir to a higher reservoir during periods of low electricity demand and excess generation, and then releasing it to generate electricity during periods of high demand or low generation. Pumped hydro storage provides a cost-effective solution for storing intermittent renewable energy and stabilizing the grid. It also helps in reducing the reliance on conventional fossil fuel-based power plants.
B) Market Dynamics:
1. Increasing Renewable Energy Generation: The growing deployment of renewable energy sources such as solar and wind power has led to the need for energy storage technologies like pumped hydro storage. Pumped hydro storage systems enable the efficient storage of excess renewable energy, which can be used during periods of low generation or high demand. This helps in grid stabilization and reduces the dependence on conventional power plants.
2. Grid Stabilization Opportunities: With the increasing penetration of intermittent renewable energy sources, maintaining grid stability has become a significant challenge. Pumped hydro storage systems provide a reliable and flexible solution for balancing supply and demand fluctuations. They can rapidly respond to the changing energy demand and supply, thereby ensuring grid stability and reducing the risk of blackouts.
C) Segment Analysis:
The pumped hydro storage market can be segmented based on type, capacity, and end-user. The segment analysis focuses on the dominating sub-segment and the reasons for its dominance.
D) PEST Analysis:
1. Political: Government policies and regulations supporting renewable energy deployment and grid integration play a crucial role in the growth of the pumped hydro storage market.
2. Economic: The increasing need for grid stabilization and energy storage solutions creates economic opportunities for pumped hydro storage system providers.
3. Social: The growing awareness and acceptance of renewable energy sources contribute to the widespread adoption of pumped hydro storage solutions.
4. Technological: Technological advancements in pumping and turbine technologies are enhancing the efficiency and performance of pumped hydro storage systems.
E) Key Takeaways:
1: The global Pumped Hydro Storage Market Growth is expected to witness high growth, exhibiting a CAGR of 7.18% over the forecast period. This growth is primarily driven by the increasing deployment of renewable energy sources and the need for grid stabilization.
2: In terms of regional analysis, the Asia-Pacific region is expected to be the fastest-growing and dominating region, owing to the rapid expansion of renewable energy capacity and supportive government policies.
3: Key players operating in the global pumped hydro storage market include Duke Energy Corporation, EON SE, Enel SPA, Electricite de France SA, and Iberdrola SA. These players are actively involved in research and development activities to enhance the efficiency and performance of pumped hydro storage systems.