Pumped hydro storage industry to add a remarkable dynamism to power generation sector, Estimates claim a coveted revenue of USD 350 billion by 2024
Published Date: September 21, 2017 Author: Sunil Hebbalkar
Endorsed with a powerful record of efficient power generation, pumped hydro storage industry demand is witnessing a rather escalated curve in global renewable energy space. Pertaining to the fact that solar and wind energy generation systems are dependent on the weather, in recent times, countries have unearthed the power of hydro-electricity. It has in fact, come to the fore, that most regions have been giving preference to hydro-electric power plants to enhance their energy grid. Considering the potential of hydro-electric power plants to generate energy, most of the end-use sectors are shifting their focus on hydraulically generated electricity – a trend that is poised to add a renewed dynamism to the global pumped hydro storage market trends in the ensuing years.
Another chief factor profoundly influencing pumped hydro storage market size is the escalating number of infrastructure projects on a global scale. This driving factor largely encompasses the renovation activities in the existing infrastructure, which indeed demands a sizable proportion of hydro storage. To meet this growing demand, both the government as well as the private entities are vigorously working on product and technique improvisations. The commendable efforts undertaken by the national governments, for instance, heavy investments in electric grid improvisations, underlines the involvement and impact these entities are leaving on the profitability landscape of pumped hydro storage industry.
The pointers below deliver an in-depth understanding of:
- the developments prevalent in pumped hydro storage market
- the contributions of the regional governments and private entities in the growing pumped hydro storage industry share
China to install the world’s largest pumped storage hydro-power plant by 2021
The Chinese government is planning to develop a 3600 MW hydropower plant in the Hebei Province of China, encompassing 12 pump turbine units each of 300 MW capacity. The facility is to be developed by the State Grid Xinyuan Co. Ltd. in collaboration with Andritz, which will supply pump turbine units. With development of this plant, China aims to comply with the ongoing climatic changes, in addition to bringing forth ecological, social, and economic benefits for the region. This favorable initiative undertaken by the Chinese government to promote emission reduction and energy savings will quite vividly stimulate China pumped hydro storage industry share over 2017-2024.
GE to stabilize Israeli power grid, augmenting the regional pumped hydro storage market size
Considering the urgent need to exploit renewable energy sources, the Israeli government has signed a contract with GE Renewable Energy to install their first ever pumped storage power plant. According to the deal, GE has to design, manufacture, and install the required number of hydro-mechanical and electro-mechanical equipment for a 344 MW power station in Israel. Reportedly, two 172 MW pumped-storage units would be installed at the station. Apart from the Kokhav Hayarden power station, GE has also been developing the Gilboa hydro power plant in Israel. The shifting focus of the Israeli government toward adoption of renewable energy sources is thus estimated to massively augment the regional pumped hydro storage market.
Australia to become 100% dependent on renewable electricity, impacting APAC pumped hydro storage market
Researchers at the Australian National University (ANU) have stated that Australia has the potential to generate ‘out-and-out’ 100% of its electricity from pumped hydro energy storage power plants. On this note, the ANU has mapped about 5000 pumped hydro energy storage sites across various regions in the country. To develop off river pumped hydro storage sites, the Australian Renewable Energy Agency has funded nearly USD 449,000. Reportedly, the Canberra district, Tasmania, and Queensland areas have a collective potential of 15000 GWh. The aforementioned statistics are evidence enough to prove the tremendous potential of Australia pumped hydro storage industry.
Contribution of NEC Energy Solutions and Switzerland government toward pumped hydro storage industry
The Switzerland government has initiated a significant move to increase dependency on sustainable energy in the future. Elektrizitätswerke des Kantons Zürich (EKZ), the Swiss renewables utility, has collaborated with NEC Energy Solutions, a wholly owned U.S. subsidiary of the Japan based NEC Corp., that will necessitate the latter to install the first large scale commercial battery storage power project in Switzerland with an energy generation capacity of 18 MW and 7.5 MWh energy storage system by 2018. This storage product is deemed to be one of the best solution to complement pumped hydro storage power generation, thereby, invariably contributing toward augmenting the regional pumped hydro storage market.
Another instance that depicts Switzerland’s contribution to pumped hydro storage industry is the yesteryear installation of the 1,000-MW Linthal pumped-storage hydropower plant. Back in 2016, the Baden headquartered energy utility, Axpo Holding AG, in conjunction with GE Renewable Energy, were involved in successfully synchronizing a 1000 MW pumped storage plant to the Swiss grid, which is expected to markedly impel the regional pumped hydro storage market share over the coming years.
Dominion Energy looking forward to build pumped hydro storage plant in coalfields (United States)
A rather reputed American power and energy company, Dominion Energy, Inc., has been lately exploring the sites in the coalfields of Southwest Virginia to build a pumped hydroelectric storage plant. Dominion, however, is not the only company to partake in this research, since many other firms have been observed to depict interest in implementing pumped hydroelectric storage projects across the U.S., given the surge in the popularity of pumped hydro storage industry. For instance, Appalachian Power, which supplies electricity to most of the consumers in Southwest Virginia, has also been wanting to establish its position in U.S. pumped hydro storage market. In this regard, the utility is likely to apply to the Virginia State Corporation Commission for permission to construct pumped hydroelectric storage facilities in the coalfields of Virginia. Thus, pertaining to the installation of new hydroelectric power plants in tandem with the surging requirement of grid support systems for renovation and upgradation, U.S. pumped hydro storage industry share is slated to witness commendable gains in the ensuing years.
The immense contribution by companies partaking in this business space makes the competitive landscape of pumped hydro storage industry vivid and dynamic. Some of the renowned names defining the competitive hierarchy of pumped hydro storage market are Toshiba, Voith, Dongfang Electric, EDF, Eskom, Schluchseewerk AG, J-Power, SinoHydro, Northland Power, Absaroka Energy, Enel, Genex, and Eskom.
Considering the numerous economic and environmental benefits, in the coming years, renewable energy is certain to be utilized prominently across the power generation applications. The fact is further evident from the increasing emphasis on the reduction of greenhouse gas emissions. The envision of achieving a carbon-free environment and the numerous R&D activities addressing the same, is set to provide a remarkable impetus to the pumped hydro storage market share over the coming years. Estimates by Global Market Insights, Inc. claim the global pumped hydro storage industry share to surpass USD 350 billion by 2024.
Global Market Insights, Inc. has a report titled “Pumped Hydro Storage Market Size by System (Open loop, Closed loop, Innovative), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, Italy, UK, France, Austria, Spain, Portugal, Ukraine, Switzerland, China, Japan, South Korea, India, Rest of World) Application Potential, Price Trends, Competitive Market Share & Forecast, 2017 – 2024” available at https://www.gminsights.com/industry-analysis/pumped-hydro-storage-market