Pumped Hydro Storage Market Report 2026

The pumped hydro storage market size has grown strongly in recent years. It will grow from $439.14 billion in 2025 to $480.35 billion in 2026 at a compound annual growth rate (CAGR) of 9.4%. The growth in the historic period can be attributed to rising global electricity demand, increasing hydropower adoption, growing emphasis on grid stability, expansion of renewable integration, rising investment in energy storage.

The pumped hydro storage market size is expected to see rapid growth in the next few years. It will grow to $704.99 billion in 2030 at a compound annual growth rate (CAGR) of 10.1%. The growth in the forecast period can be attributed to increasing renewable energy penetration, growing government support for storage projects, rising focus on energy sustainability, expansion of grid modernization initiatives, increasing investment in long duration storage. Major trends in the forecast period include increasing focus on large scale renewable energy storage, growing development of long duration power backup systems, rising adoption of grid stability enhancement solutions, expanding construction of hydropower based storage projects, increasing emphasis on energy reliability and security.

The growing demand for renewable energy is expected to boost the growth of the pumped hydro storage market in the coming years. Renewable energy is generated from naturally replenishing resources such as sunlight, wind, water, tides, and geothermal heat. However, the intermittent nature of many renewable sources creates challenges for grid stability and continuous power supply. Pumped hydro storage plays a critical role in overcoming these challenges by storing excess electricity generated during periods of high renewable output and releasing it during peak demand, thereby improving grid reliability, flexibility, and energy security. For example, in December 2023, according to gov.uk, a UK-based government agency, renewable energy accounted for 44.5% of total electricity generation in the UK during the third quarter of 2023. Therefore, the growing demand for renewable energy is driving the expansion of the pumped hydro storage market.

Major companies operating in the pumped hydro storage market are increasingly engaging in strategic collaborations to strengthen their market presence and accelerate project development. Strategic collaborations help companies pool technical expertise, share financial risk, secure long-term offtake agreements, and integrate pumped hydro storage more effectively into national energy systems. For instance, in August 2023, Adani Group, an India-based multinational conglomerate, partnered with Greenko Group, an India-based renewable energy company, in a landmark collaboration within India’s energy sector. Under this partnership, Greenko committed to supplying up to 1 GW of firm and dispatchable renewable energy, including round-the-clock power, to Adani’s proposed green industrial complex. The collaboration also includes 6 GWh of long-duration pumped hydro storage capacity sourced from Greenko’s off-stream closed-loop pumped storage projects in Madhya Pradesh and Rajasthan, supporting large-scale renewable energy integration.

In February 2023, TransAlta Corporation, a Canada-based electricity power generator, acquired a 50% stake in Montem Resources Limited's 4.8GWh pumped hydro energy storage development project for an undisclosed amount. This acquisition is anticipated to enhance the reliability of the Alberta grid with increased capacity and duration, complementing TransAlta with a share of Tent Mountain's land rights, fixed assets, and intellectual property. Montem Resources Limited is an Australia-based developer of renewable energy, including pumped hydro storage projects.

Major companies operating in the pumped hydro storage market report are Enel Group, Electricite de France SA (EDF), Hitachi Energy Ltd., General Electric Co, Iberdrola SA, Mitsubishi Heavy Industries Ltd., Siemens Energy AG, ABB Ltd., Duke Energy Corporation, Chubu Electric Power Company Inc., Statkraft AS, Eskom, Genex Power Limited, Alstom Pvt Ltd., Andritz Group, Dongfang Electric, Voith GmbH & Co KGaA, China Three Gorges Corporation, Snowy Hydro Limited, Greenko Group, EON SE, Toshiba Energy System & Solutions Corporation, San Diego County Water Authority, RusHydro, FirstLight Power, Schluchseewerk, Gridflex Energy, National Grid plc, NextEra Energy Inc.

Asia-Pacific was the largest region in the pumped hydro storage market in 2025. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the pumped hydro storage market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the pumped hydro storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The pumped hydro storage market includes revenues earned by entities by constructing dam and reservoir based pumped hydro storage plant. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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