Global Pumped Storage Capacity Reaches 201GW in 2025
Long-duration energy storage grows alongside a 243GW construction pipeline despite lower funding than battery systems.
Updated on Oct. 29, 2026 in Energy
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Should nations prioritize long-duration pumped storage over battery systems to ensure stable electricity grids?
Global pumped storage hydropower capacity reached 201GW in 2025. While projects totaling 243GW remain under construction, the sector faces a significant disparity in public funding compared to short-term battery storage systems.
Why it matters
Grids require long-duration energy storage to bridge gaps in renewable supply lasting hours or days. This infrastructure is essential for grid stability, yet currently receives 12 times less public funding per unit of storable energy than battery storage.
Global pumped storage capacity hit 201GW in 2025, supported by a development pipeline of 621GW. Projects totaling 243GW are currently under construction, though the sector's funding remains significantly lower than battery grid support systems.
The players
International Hydropower Association
A global industry body that tracks renewable energy infrastructure and maintains performance benchmarks for hydroelectric projects.
EY
A global professional services firm that conducts economic analysis on energy infrastructure and power grid efficiency.
The details
Pumped storage acts as a giant battery by using two water reservoirs at different elevations; when electricity demand is low, water is pumped to the upper reservoir, and when demand peaks, it is released through turbines to generate power. This method provides essential energy during extended periods of low renewable generation. In contrast, battery energy storage systems are primarily used for short-term grid support during evening peaks, rather than the multi-day balancing provided by pumped storage.
Timeline
2025: Global pumped storage capacity reached 201GW.
2026: Anticipated release of IHA Outlook publication and an EY study.
2030: Expected annual capacity additions to exceed 20GW.
2036: Projected doubling of total installed capacity.
2041: Projected tripling of total installed capacity.
The Tech Race
Pumped storage currently faces a competitive imbalance in public policy and investment, receiving 12 times less funding per unit of stored energy than battery storage. This trajectory highlights a divergence between long-duration hydroelectric solutions and short-term grid-scale battery deployments.
Large-scale pumped storage provides the grid stability needed to manage renewable energy, potentially reducing energy curtailment by 60%. These systems are essential for long-term grid reliability, even as battery storage remains the primary tool for short-term fluctuations.
The takeaway
The sector must bridge a major funding gap to meet the projected tripling of capacity by 2041. Investors and policymakers should watch the 2026 EY study for updated economic assessments on how these projects compete with battery-based storage deployments.
Further reading
Explore more analysis on infrastructure transitions at Energy.
Source note: This article includes information reported by ESI-Africa.
Live Poll
Should nations prioritize long-duration pumped storage over battery systems to ensure stable electricity grids?
