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
Published Date: August 2017 | 140 Pages | Report ID: GMI2019 Report Format: PDF
Pumped Hydro Storage Market size for 2016 was valued over USD 250 billion and the cumulative installation is set to exceed 200 GW by 2024.
UK Pumped Hydro Storage Market Size, By System, 2016 & 2024 (USD Billion)
Favourable government policies pertaining to expansion of grid infrastructure coupled with increasing investments toward the renewable energy will foster the pumped hydro storage market size. In 2016, the United Nations has reported investments worth USD 45 billion towards the modernization and strengthening of existing grid infrastructure across the globe. The investments are further analysed in line with the growing demand for energy security and exponential increase in electricity demand across the developing regions.
High storage capacity, grid stability and energy efficiency are some of the key parameters that will stimulate the pumped hydro storage market share. Ongoing capacity expansion along with ability to black start will further boost the industry landscape. According to European Association for Storage of Energy (EASE), the PHS projects have an average efficiency of 70% to 85% when compared with other available technologies. Further, the Federal Energy Regulatory Commission has issued 50 preliminary permits for expansion of energy storage in the U.S.
Upgradation and expansion of existing plants with advanced technologies to enhance operational flexibility coupled with growing initiatives toward the reduction of carbon footprints will further boost the pumped hydro storage market potential. Ongoing reforms toward the integration of clean storage system favoured by energy efficiency reforms will further embellish the industry landscape. In 2017, International Finance Corporation (IFC), proclaimed an investment of USD 1.2 billion toward India’s clean energy sector.
Decline in the capital cost along with effective provision of ancillary grid services by the technology will boost the pumped hydro storage market. Network frequency control and ability to store provides added advantage to the technology on account of quicker lead times toward electrical load variations. However, environmental constraints pertaining to the loss of habitat across the project reservoir may impede the industry growth.
Pumped Hydro Storage Market, By System
Ease of compatibility with a hydroelectric plant coupled with availability of a free-flowing water source will positively influence the open loop pumped hydro storage market share. As per Department of Energy, in 2016 there are 34 open-loop storage projects operational in China. Low environmental impact by its competitive counterparts restrain the product penetration in the coming years.
Closed loop pumped hydro storage market is set to exceed USD 16 billion by 2024. Low impact on aquatic habitat along with the technological advancement in turbine and generator design will propel the business outlook. According to DOE in 2016, there are six closed-loop PHS projects under planning and construction stage in the U.S.
Pumped Hydro Storage Market, By Region
Upgradation and refurbishment of existing grid infrastructure along with growing demand for reliable grid support system will foster the U.S. pumped hydro storage market size. Expansion in the microgrid network coupled with enhancing distributed generation technologies will propel the industry landscape. In 2017, Saudi Arabia has planned to invest USD 40 billion in infrastructure development in the U.S.
China pumped hydro storage market is set to exceed 45 GW by 2024. Exponential increase in consumption of electricity coupled with rising investments across the infrastructural development will stimulate the business outlook. Favourable government policies along with integration of renewable energy technologies will foster the product penetration. In 2017, the National Energy Administration came with a plan of flexible grid network to integrate various renewable generation technologies and included an investment of USD 361 billion by 2020.
Spain pumped hydro storage market size is projected to witness gain of over 3% by 2024. Increasing investments toward micro grid network coupled with favourable energy efficiency labelling and compliance programs will foster the business landscape. The European Commission enacted a directive 2012/27/EU to create a standardized framework for promoting energy efficiency across the EU member countries.
Growing concerns toward energy security along with growing adoption of sustainable energy will propel the Japan pumped hydro storage market. Upsurge in demand for grid storage will further embellish the business landscape. The industry has witnessed strong influence from major energy storage manufacturers including Voith, Alstom, and Enel on account of extensive technological R&D establishments across the country. In 2015, Japanese Ministry of Economy, Trade and Industry plans to invest USD 700 million towards energy storage in the country.
Competitive Market Share
Eminent industry players in pumped hydro storage market includes Voith, Absaroka, EDF, J-Power, Genex, Eskom, Toshiba, Dongfang Electric, Alstom, Snowdonia, SinoHydro, Eskom, Northland Power, Enel and Schluchseewerk AG.
Increasing investments toward the development of cost-effective storage systems along with advanced technological deployments has been a key strategic implication by leading industry players. Reduction in the capital cost coupled with economies of scale in long run has further established strategic platform for business growth.
Pumped Hydro Storage Industry Background
Pumped hydro storage offers storage of energy in the form of water. These systems are used by electric power companies for electrical load balancing and is the largest capacity form of grid energy storage. The water is stored in an upper reservoir and electricity is generated by pumping the water into lower reservoir during peak times. The water is pumped back from lower to upper reservoir during off peak demand.
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