Spotlight |
Hydropower’s storage backbone for Europe
As Europe races toward a renewable future, a coalition of utilities, suppliers, and associations has unveiled the Paris Pledge – a bold commitment to scale up pumped storage hydropower and secure the continent’s clean energy transition
EUROPE’S ENERGY SYSTEM IS at a crossroads. The continent is adding renewable power faster than ever before, yet the challenge of storing electricity when the wind drops or the sun sets is growing sharper by the day. With variable renewables such as wind and solar projected to make up 86% of Europe’s generation capacity by 2050, the need for long-duration storage is critical. That is the backdrop for the Paris Pledge,
launched on 9 September 2025 by the International Hydropower Association (IHA) and Eurelectric, with the backing of more than 50 utilities, suppliers, and associations. It represents the most united call yet for scaling up pumped storage hydropower (PSH) – the only technology currently proven at scale to deliver long-duration electricity storage. “The Paris Pledge unites the sustainable
hydropower industry around one clear objective: to provide the storage backbone for a renewable-powered Europe,” said Malcolm Turnbull, President of IHA. “By scaling up
pumped storage, we can accelerate the energy transition, create jobs, and deliver on Europe’s climate and security goals.”
Why pumped storage? Pumped storage hydropower is sometimes
called the “giant battery of the grid.” When renewable power is abundant and prices are low, excess electricity pumps water uphill to a reservoir. When demand rises, that water is released downhill through turbines to generate electricity. It is a flexible, efficient system that already
makes up more than 90% of the world’s electricity storage capacity. Europe today operates 48GW of PSH capacity, storing around 40TWh annually. But analysts estimate that the continent will need to double that fleet within 25 years to keep pace with renewable growth. The benefits extend well beyond flexibility: PSH supports grid stability, cuts consumer costs by reducing curtailment and volatile prices, and strengthens energy security by reducing reliance on imported gas and coal. It also brings local economic benefits, from new jobs to water management and flood control.
As Kristian Ruby, Secretary General of Eurelectric, put it: “As we scale up wind and solar at unprecedented speed, we must invest in long-duration storage solutions that keep the system
reliable, affordable, and resilient. Pumped storage hydropower is indispensable here. The Paris Pledge is a timely and necessary call to action – and Eurelectric is proud to support it.”
The cost of doing nothing Without sufficient long-duration storage, Europe risks a costly and insecure energy future. In 2023, more than 12 TWh of renewable electricity was curtailed – wasted because it could not be stored – costing consumers an estimated €4.3 billion. By 2030, curtailment could be ten times higher, with losses of up to 118 TWh annually. At the same time, negative electricity prices have surged, rising by 50% in 2024
10 | October 2025 |
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compared with the year before. Yet average wholesale prices remain double pre-2021 levels, leaving households and industries squeezed.
PSH offers a release valve: it absorbs excess power when prices plunge and returns it to the grid when needed, reducing volatility. By stabilising prices and supporting renewable business models, it underpins the confidence investors need to continue building out wind and solar.
A historic call to policymakers The Paris Pledge is not just an industry
statement of intent; it is also a blueprint for regulatory reform. To unlock Europe’s 35GW pipeline of PSH projects – equivalent to more than 700GWh of storage – the signatories set out specific demands at both EU and national levels.
At EU level, the Pledge calls for: A dedicated initiative to boost electricity storage roll-out, in line with the European Commission’s mission letter to the Energy Commissioner. Clear recognition of long-duration storage as distinct from short-duration batteries in legislation.
Swift adoption of RED III and the Electricity Market Design Reform. At Member State level, it urges governments to: Fully implement EU reforms. Ensure PSH is fairly remunerated for the range of system services it provides. Eliminate double grid fees, which currently penalise storage operators.
Fast-track permitting for PSH as infrastructure of overriding public interest.
The message is blunt: without political will, the sector’s potential will remain stuck in the planning stage.
Industry commitments: walking
the talk The pledge is also a promise of action from the hydropower sector itself. Companies have committed to: Invest in developing new PSH projects. Reinforce supply chains to expand deployment capacity. Train and empower a new workforce, closing age and gender gaps.
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