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The Pumped Hydro Storage Market to Show Substantial Growth Owing To Increasing Investments In Renewable Energy

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Purvaja
The Pumped Hydro Storage Market to Show Substantial Growth Owing To Increasing Investments In Renewable Energy


The Pumped Hydro Storage Market is multifaceted and includes a variety of related services, products and technologies. Pumped hydro storage involves using surplus electricity to pump water uphill. Later, when needed, it releases the stored water to drive turbines and generate electricity. It is the largest-capacity form of grid energy storage available and accounts for more than 95% of the world's bulk energy storage capacity.


Pumped hydro storage utilizes the potential energy of water stored at a higher elevation and converts it to a usable form of energy. It uses reversible turbined pump-generators to pump water between two reservoirs — one at a high elevation and one at a lower elevation. During off-peak hours, surplus power is used to pump water into the upper reservoir. Later, during peak hours, water is released from the upper reservoir to the lower one through turbines, converting the potential energy into electricity as per the demand. This acts as a cost-effective means of addressing intermittency issues associated with renewable energy sources like solar and wind.

The global Pumped Hydro Storage Market is estimated to be valued at US$ 348.25 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.


Market key trends:


Increasing investments in renewable energy as well as measures aimed at reducing dependence on fossil fuels are driving the demand for large-scale energy storage solutions like pumped hydro. Rising focus on grid reliability and stability along with the need for ancillary services to support renewable integration are also fueling the adoption of pumped hydro storage. Further, advancements in technologies such as variable-speed pumping, in-conduit power generation, and closed-loop systems as well as flexible pumped hydropower are helping increase the efficiency and economic viability of pumped storage plants. The development of new sites suitable for PHS facilities, retrofitting existing hydropower stations and the associated capacity expansion projects are some of the key trends expected to positively influence the industry landscape over the coming years.


Porter's Analysis


Threat of new entrants: The high capital costs associated with pumped hydro projects pose significant barriers to entry. Bargaining power of buyers: Large utilities and grid operators hold a significant share of bargaining power as buyers due to the bulk supply contracts. Bargaining power of suppliers: The technology providers have some bargaining power due to the specialized skills required and proprietary technologies. Threat of new substitutes: Technologies such as battery energy storage are emerging as substitutes but pumped hydro still offers advantages in terms of capacity and cost. Competitive rivalry: Intense competition exists between established operators to win new project contracts.


SWOT Analysis


Strengths: Pumped hydro storage provides large-scale energy storage capacity at a relatively low cost. It also offers long asset lifespan of over 100 years.

Weaknesses: High initial capital investments pose challenges. Large land areas are also required for reservoirs.

Opportunities: Increasing share of renewable energy is driving the need for energy storage solutions like pumped hydro. Supportive government policies towards energy storage also present opportunities.

Threats: Emergence of newer energy storage technologies poses competitive threats. Delays in project implementation and cost overruns can also impact returns.


Key Takeaways


The Global Pumped Hydro Storage Market Demand size is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing focus on renewable energy integration. Pumped hydro storage provides grid-scale energy storage to balance the fluctuations arising from intermittent renewable sources like wind and solar power. Several countries in Europe and Asia Pacific are witnessing significant growth.


Regional analysis: Europe dominates the global market currently with countries like Switzerland, Norway, Italy and Spain having major pumped hydro storage facilities due to the early adoption as well as presence of ideal geographical conditions for implementation. Asia Pacific is expected to witness the fastest growth over the forecast period led by China, India and Japan. These countries are undertaking massive pumped hydro projects to support their renewable energy expansion plans.


Key players operating in the pumped hydro storage market include global operators like Duke Energy Corporation, EON SE, Enel SPA, and Electricite de France SA, and Iberdrola SA along with technology providers like General Electric Company, Siemens AG, Andritz AG, Mitsubishi Heavy Industries, Ltd, Voith GmbH & Co. KGaA, and Ansaldo Energia SpA. The market is witnessing new collaborations and contracts especially in growing Asian markets.

For more insights, Read-

https://www.insightprobing.com/pumped-hydro-storage-market-growth-market-size-share-analysis/

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