Pumped hydro storage market seen growing to 417.8 GW by 2035

Market Research Future projects global pumped hydro storage capacity will rise from 229.1 GW in 2026 to 417.8 GW by 2035, driven by renewable energy growth, grid-stability needs and long-duration storage demand. The report also highlights fast-growing surface-to-underground projects that reuse mine shafts and caverns.

Why it matters: - Pumped hydro storage is still the largest deployed form of grid-scale energy storage, and its role is expanding as power systems add more wind and solar. - The technology helps utilities balance supply and demand, support frequency regulation and improve grid resilience. - Market Research Future’s outlook suggests pumped hydro will remain a core tool for long-duration storage in a low-carbon power system.

What happened: - Market Research Future said the global pumped hydro storage market had 213.50 GW of installed capacity in 2025. - The market is projected to grow from 229.10 GW in 2026 to 417.80 GW by 2035. - That forecast implies a 6.50% CAGR across the period. - Surface-to-underground installations are projected to grow at a 7.28% CAGR through 2035. - The report names Duke Energy, EDF, Engie, Iberdrola, RWE, China Three Gorges Corporation, Hydro-Québec, State Grid Corporation of China and Tennessee Valley Authority among key players. - The report is available through the company’s sample brochure and the full market report.

The details: - Pumped hydro storage stores excess electricity as gravitational potential energy by pumping water uphill, then releases power when demand rises. - The market is benefiting from rapid renewable energy growth, especially solar and wind, which create intermittency for grid operators. - Utilities are using pumped hydro for peak shaving, load balancing and frequency regulation. - Government policies aimed at cutting greenhouse gas emissions are supporting new storage infrastructure. - Industrialization, urbanization and digital transformation are increasing electricity demand from data centers, manufacturing plants, EV charging networks and smart cities. - Energy security concerns are pushing countries to build more domestic storage and reduce dependence on imported fuels. - Closed-loop pumped hydro systems are gaining traction because they do not rely on natural water bodies and can reduce environmental impacts. - Modernization of existing plants is underway, with utilities adding advanced turbines, digital controls and automated monitoring. - Developers are pairing pumped hydro with solar and wind projects to create hybrid renewable energy hubs. - Artificial intelligence, machine learning and predictive maintenance tools are being used to improve dispatch and plant performance. - Advanced variable-speed pump-turbine systems are improving operational flexibility. - Better turbine designs are raising conversion efficiency and lowering maintenance needs. - Civil engineering advances, geological assessment tools and digital modeling are helping developers find sites and reduce project risk.

Between the lines: - The report points to a shift from traditional reservoir-linked projects toward more flexible and lower-impact designs. - Surface-to-underground systems matter because they can tap disused mine shafts and purpose-built caverns, widening the pool of viable sites. - Asia-Pacific leads the market, with China as the global front-runner and India, Japan and Australia also expanding capacity. - Europe is leaning on pumped hydro to support decarbonization and energy security, while North America is adding projects to improve grid resilience. - Latin America and the Middle East and Africa are earlier in the adoption curve, but both regions are being pulled by rising electricity demand and renewable buildouts.

What's next: - The market is positioned for continued expansion as governments, utilities and private investors prioritize clean power, grid stability and long-duration storage. - More projects are likely to use digital monitoring, AI-enabled operations and advanced turbine technology to improve economics. - The report expects pumped hydro to stay relevant as renewable penetration rises and power systems need storage that can last longer than most batteries. - More related reports are listed in the MRFR library, including hydraulic equipment, dosing pump, battery monitoring systems, substation batteries, battery, flow battery, grid scale battery, sodium sulfur battery, solid state battery and battery storage inverter.