Spotlight |
Why pumped storage is having a global renaissance
As renewable energy surges globally, the demand for reliable energy storage has never been greater. Pumped Storage Hydropower (PSH) is leading the charge in stabilizing grids, with countries like the UK, China, and Australia investing heavily in new projects. Eddie Rich, CEO of the International Hydropower Association, explains how PSH is becoming an essential pillar in the race towards net zero and energy security
Further information
For more information on the International Forum for Pumped Storage Hydropower and to get involved in the IHA’s Pump It Up: Powering a decarbonised world campaign visit:
hydropower.org.
WE WELCOMED THE UK Government’s announcement in October launching a new cap and floor scheme to help build energy storage infrastructure. This will put the UK a step closer to energy independence. Any projects developed as a result will be the first significant long duration energy storage (LDES) facilities in the UK in nearly four decades, helping to create back up renewable power and bolster the UK’s energy security. This could be seen as an isolated case, but it is illustrative of what is happening around the world. Many world leaders are waking up to how much investment is needed to maintain grid stability to balance the rapid roll-out of variable renewable energies. This realisation is leading to a welcome renaissance of PSH globally. China has been leading the way with massive construction and delivery of projects and has included PSH in multiple Five-Year Plans, with a target for 120GW by 2030. In 2023, numerous major PSH projects have been announced in India following policy changes to attract investment in reliability and a PSH target of 27GW by 2032, and in Australia, they plan to quadruple firming capacity to 49GW by 2050 with much of it coming from PSH. This year the COP29 Presidency has introduced 14
key initiatives aimed at securing global commitments during the negotiations. Among these is the COP29 Global Energy Storage and Grids Pledge, which
sets an ambitious target to increase global energy storage capacity six times above 2022 levels, reaching 1,500GW by 2030. This pledge is poised to become a focal point for the renewables industry at COP29 this coming November.
It is vital these pledges turn rapidly into actions and policy mechanisms like the UK’s. The shift of energy generation to wind and solar is the fastest transition in history. In 2023, 80% of additional net global generation capacity was solar and wind, growing at compound rates of 22% and 11% annually. This shift to variable renewable sources is good for reaching net zero targets, but it also means we need to be able to store the solar and wind energy when we have excess supply and then use it when we need it. If we do not have a means to store this fantastic amount of variable renewable energy, there is a very real risk of grids either having too much or too little supply to meet the changing demand through the day, the seasons, and indeed over time as we move to more electrification. This has been the ignored crisis within the current energy crisis. This is where PSH comes in. The primary source of
UK’s new cap and floor scheme to boost energy storage and security
The UK government has launched a new investment support scheme aimed at accelerating the development of long duration electricity storage (LDES) technologies, including pumped storage hydropower. The initiative, announced by Energy Minister Michael Shanks, will unlock billions in private investment to expand renewable energy storage capacity, ensuring surplus energy can be stored for use during high demand periods. At the heart of the scheme is a “cap and floor” mechanism, which guarantees
developers a minimum income while capping excessive profits. This financial support is expected to remove barriers that have stalled large-scale energy storage projects for decades. Ofgem will oversee the scheme, with the first applications expected next year. Currently, the UK has 2.8GW of LDES capacity, primarily in Scotland and Wales. Expanding this capacity is crucial to achieving net zero by 2050, boosting energy security, and reducing reliance on global fossil fuel markets. The scheme is part of a broader effort to strengthen the country’s clean energy infrastructure.
stored energy on electricity grids today, at well over 90% of energy stored, is PSH. Installed pumped storage hydropower assets currently provides balance to the daily variations – “charging” when there is too much wind and sun and then “generating” when the sun goes down. In addition, it provides seasonal balance. In times of ‘dunkelflaute’ (long periods when neither the wind blows nor the sun shines) hydropower provides the energy backbone that keeps the lights on. And there are plenty of potential sites – the Australian National University has developed an atlas of over 600,000 potential off-river sites – all outside protected areas or populated areas. Even if only 1 in 100 of these were viable then we have enough storage to make full use of wind and solar generation around the world several times over. This doesn’t include the extensive opportunities for potential brownfields sites – again ANU has developed an atlas. IHA intends to maximise the opportunities this
brings to the hydropower sector. We will be taking the message to COP29 that without PSH, you cannot achieve net zero. We are inviting governments to establish a leadership group for PSH in the lead up to the next International Forum on Pumped Storage Hydropower in September 2025, to develop a clear roadmap for PSH development globally in the lead up to 2050 and beyond.
10 | November 2024 |
www.waterpowermagazine.com
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