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Hydropower leaders push for national policy on pumped storage at energy summit
Hydropower industry leaders have called for a coordinated national policy to support pumped storage hydropower (PSH), launching a new report at the Australian Clean Energy Summit. The report, Pumped Storage Hydropower: Powering Australia’s
Energy Future, was welcomed by Malcolm Turnbull, President of the International Hydropower Association (IHA) and former Prime Minister of Australia. It sets out a case for federal action to accelerate investment in PSH, which is seen as critical to Australia’s long-duration energy storage needs and net zero targets. “There is a clear need in Australia for the introduction of a co-ordinated national hydropower policy framework and roadmap,
to incentivise pumped storage and hydropower investments,” Turnbull said. “Now is a critical time for Australia as energy security has deepened as a political issue. There is an urgent need to consider the amount of large-capacity, long-duration energy storage that will be required to support Australia’s grid in the future.” The report draws on forums held earlier this year in Brisbane and
Sydney, co-hosted by IHA and engineering firm GHD. Those events brought together government and industry leaders to identify barriers to PSH investment. It also builds on IHA’s global guidance released in 2024, which recommended measures to reduce risks for investors in new pumped storage projects.
Despite several PSH projects under development, few have
reached final investment decision. Industry leaders say this highlights the need for federal coordination to integrate PSH into the broader energy transition. Key recommendations from the report include: Recognising pumped storage and conventional hydropower as strategic assets requiring joint federal and state support. Aligning hydropower infrastructure planning with long-duration storage targets.
Defining long-duration storage as eight hours or more in policy frameworks. Streamlining licensing and permitting to reduce delays and risk. Creating consistent government support mechanisms for long-life storage assets.
Reforming electricity market design to better value firming and balancing services.
The IHA is urging the federal government to consider these recommendations as part of the Expert Panel Review of the National Electricity Market led by Dr Tim Nelson. According to the report, clear long-duration storage targets,
market reforms, and a dedicated hydropower policy framework are needed to ensure pumped storage plays its role in decarbonising Australia’s electricity grid.
Scotland Coire Glas first pumped storage project to earn Gold Certification under Hydropower Sustainability Standard The Coire Glas Hydropower Project in Scotland has become the first pumped storage hydropower project in the world to receive Gold certification under the Hydropower Sustainability Standard (HSS). The project, located on Loch Lochy and led by SSE Renewables, received the recognition following a preparation stage assessment earlier this year. The assessment noted strong performance in areas such as labour and safety standards, governance, stakeholder engagement, and planning for environmental and social outcomes. This included considerations for water and sediment management, biodiversity, and cultural heritage. If approved, it would be the largest long- duration energy storage facility in the UK, capable of storing approximately 30GWh of renewable energy. SSE expects the project could begin contributing to the UK’s energy system in the early 2030s, pending the development of a suitable government support scheme. João Costa, Executive Director of the
Hydropower Sustainability Alliance, said, “Pumped storage is essential to a resilient, renewable-powered grid, and Coire Glas is showing that large-scale projects can be designed with sustainability built in from the
beginning. It’s exciting to see the Hydropower Sustainability Standard being used to shape one of the UK’s most ambitious energy projects.” Mike Seaton, Coire Glas Project Director, said: “Attaining Gold certification is a testament to the diligence and dedication of the Coire Glas project team. It also reflects the positive contribution of the contractors who worked with us on the project to date. “While there is still a way to go to ensure
there is an investable policy mechanism to support it, Coire Glas has a crucial role to play in helping the UK and Scottish Governments meet their net zero targets. We are delighted to demonstrate that developments of this type can be developed with a focus on sustainability.” Andrew Jacobs, SSE Hydro Sustainability Partner, added: “Working towards our certification with the Hydropower Sustainability Alliance has been a rewarding and challenging experience. Achieving Gold certification has enabled our development team to highlight how our world-class Coire Glas project can harness renewable energy sources in a way that can bring our sustainability commitment to life.”
Global Hydropower Sustainability Alliance launches HydroSelect tool for early-stage planning The Hydropower Sustainability Alliance (HSA) has launched HydroSelect, a new tool aimed at improving early-stage decision-making in
hydropower development. The tool is intended for use by developers, governments, investors, and other stakeholders to identify viable and sustainable hydropower project concepts before major investments are made. HydroSelect allows users to evaluate project options through environmental, social, and governance (ESG) criteria. It is designed to prevent costly delays, community opposition, and environmental issues by encouraging informed decisions at the outset. “Too often, developers commit to a site without fully understanding the risks, only to face costly delays, community opposition, or environmental barriers later on,” said Alain Kilajian, Deputy Executive Director of HSA. “HydroSelect helps to avoid situations like this. It brings sustainability to the front of the decision- making process, enabling smarter and more responsible planning.” The tool is structured around a three-step
process: identifying energy needs, reviewing project concepts, and ranking options based on sustainability criteria. These criteria include environmental and social risks, community acceptance, and the potential to secure permits and financing. HydroSelect was developed following a global consultation in 2024 involving members of the Hydropower Sustainability Council, which includes representatives from government, industry, finance, and civil society. Kate Lazarus, Senior ESG Advisory Regional Lead, Asia Pacific, International Finance
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