Pumped storage | A wakeup call
A European power black out should be seen as a wakeup call to ensure the challenge of providing enough energy storage does not become an ignored crisis. Here we look at some of the new projects in development that could address this call
THE BLACKOUTS THAT AFFECTED the Iberian Peninsula in May this year should be a wakeup call - not just for Spain and Portugal - but for policymakers all over the world, Malcolm Turnbull, President of the International Hydropower Association warns. “When I was Prime Minister of Australia,” Turnbull said, “it was the fear of blackouts and brownouts that drove me to champion the Snowy 2.0 pumped storage hydropower project. Australia was undergoing a rapid influx of solar generation. That was a good thing – but it brought new vulnerabilities. I realised that unless we invested heavily in storage and grid flexibility, the stability of our energy system – and the lives of millions of Australians –would be at risk.” Although the immediate causes of the Iberian
Above: The blackouts which affected the Iberian Peninsula in May 2025 should be seen as a wakeup call for policymakers all over the world
blackouts may differ from what Australia faced, Turnbull says there are two fundamental truths which remain the same: Energy security must be thought of at the level of the grid, not just individual sources of generation. Failing to do so has real, tangible consequences for citizens’ lives.
Governments and regulators need to rethink their approach because energy storage can no longer be “the ignored crisis within the crisis”, he added. Although batteries are often presented as the solution because they are cheap, easy and quick to install, Turnbull believes relying on them alone for long duration storage is “a red herring”. They cannot feasibly or affordably provide the level of multi-hour, multi-day energy backup needed to keep entire grids stable at scale, he says. Pumped storage hydropower, however, is a different
Below: Studies are underway to optimise operations at the Saurdal pumped storage power plant in Norway
story. It is a proven, robust technology with more than a century of success behind it and offers massive potential for future growth. China and India have understood this and are building more than 200GW of new pumped storage capacity to back up their enormous investments in solar and wind. Europe, unfortunately, is coming late to the party, Turnbull warns. Although Spain and Portugal are European leaders on pumped storage, ambition is falling short of need. “More investment, faster permitting, and stronger integration of hydropower into national energy strategies are essential if Europe is to secure a stable, resilient energy future,” IHA’s President states. “The recent blackouts in Iberia remind us that no
energy transition can succeed if it sacrifices reliability for speed or ideology. Clean energy without grid security is a false promise. Tellingly, it was the regions with the highest levels of hydropower capacity that were among the first to restore electricity – highlighting the value of fast-ramping, dispatchable generation in times of crisis. Hydropower proved its worth not just as a clean energy source, but as a backbone of resilience when the grid was under stress.
12 | July 2025 |
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Australian focus Pumped storage is a major focus in Australia’s clean
energy conversation. Penny Sharpe, Minister for Energy of New South Wales, recently underscored its vital when delivering the closing remarks at Pumped Storage: Powering Australia’s Energy Future, a landmark series of discussions that convened energy leaders in Brisbane and Sydney, the. “Pumped storage hydropower plays a crucial role in our energy mix… We are determined to power households and industries across the state, and the best way to do that is by backing wind and solar with long-duration storage like pumped storage. This is how we deliver the reliable, sustainable electricity that people expect – but we have to get it right.” The high-level forums, co-hosted by GHD and the IHA, brought together policymakers, industry leaders, and investors to drive momentum behind long duration energy storage. Discussions focused on the urgent need to scale up pumped storage as a cornerstone of Australia’s clean energy transition. Helen Barbour-Bourne, GHD’s National Sector Lead
for Hydropower, said: “Despite some hurdles, there’s a vast opportunity for pumped hydro to support our renewable energy future ahead of the hard deadline of coal power station closures. The private sector, backed by government policies, is stepping up, though financing remains a challenge. Together with the IHA, we brought together industry leaders to unlock pumped hydro’s potential for Australia.” “Pumped hydro will be a critical part of the future
energy technology mix, providing the firming capacity and flexibility to manage fluctuations in demand and keep power supply reliable,” says Tammy Chu, Interim Executive General Manager, Construction, Hydro Tasmania and IHA Vice-Chair. “The synergies between variable renewable energy generation and pumped storage must be recognised and valued to support the development of efficient and reliable electricity grids, in Australia and internationally.” Kieran Cusack, Chief Executive Officer at Queensland Hydro believes pumped storage is “unquestionably” the right technology to support Queensland’s clean energy transition. “Long duration pumped hydro can provide
reliable renewable energy that can power homes and businesses all across Queensland, while at the same time providing crucial energy storage and stability for our future electricity needs. Our proposed Borumba Project is both the right technology at the right location,” he said. “Hearing the discussions with industry and the International Hydropower Association on the support for the potential of pumped hydro and the role it can play in the future throughout Australia and globally highlighted there is a growing understanding of how pumped hydro energy storage
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