Pumped Storage Development
Pumped Storage continues to be a hot topic in the industry and many new projects have been proposed. However, no new projects have been built in decades. In the 2021 Ear to the River survey, approximately 25% of U.S. and Canadian survey participants anticipated developing pumped storage within the next three years. The DOE Hydropower Market Report notes that 96 pumped storage projects were in the development pipeline in the U.S. at the end of 2022. These projects ranged in size from 17 MW to 9,000 MW. We wondered if smaller or larger projects have a better chance of being developed and asked the following question in the 2023 Ear to the River survey.
Question: What size range of new pumped storage projects do you believe will be built in the next 10+ years?
NHA Pumped Storage Development Council
31 responses
Less than 100 MW
100-500 MW
500-1,000 MW
>1,000 MW
27 responses
Less than 100 MW
100-500 MW
500-1,000 MW
>1,000 MW
Solar and wind development is expected to increase the need for pumped storage hydropower across North America.
These results are in alignment with the pipeline of proposed U.S. pumped storage projects reported in DOE’s Hydropower Market Report. The report noted some significant regional differences in proposed pumped storage sizes – particularly between the Southwest (over 1,000 MW) and the Northeast (217 MW). A breakdown of the regional pipeline from DOE’s report is below:
- Southwest: 48 projects in the pipeline, average capacity 1,183 MW
- Northeast: 10 projects in the pipeline, average capacity of 217 MW
- Southeast: 9 projects in the pipeline, average capacity of 768 MW
- Northwest: 17 projects in the pipeline, average capacity 745 MW
- Midwest: 12 projects in the pipeline, average capacity 866 MW
The DOE also reported that thirty percent of the PSH projects have proposed generating capacities of 1 GW or more, and three projects proposed capacities greater than 4 GW.
In Canada, a recent report sponsored by Waterpower Canada (stantec_ps_final_en.pdf (waterpowercanada.ca)) indicates that three pumped storage projects in the 400-600 MW range are currently being evaluated in Ontario. This report focused on the realistic potential for pumped storage development in Canada, which was found to be most technically and economically feasible in British Columbia and in mountainous areas of eastern Provinces.
In the 2023 Ear to the River survey, we also asked:
Q: What do you believe is the greatest obstacle to developing new pumped storage projects?
NHA Pumped Storage Development Council
12 responses
High Capital Costs of Construction
Market for Ancillary Services
Regulatory Hurdles
Other
20 responses
High Capital Costs of Construction
Market for Ancillary Services
Regulatory Hurdles
Other
There are many factors working against successful pumped storage development and these challenges can also vary regionally based on power markets and other factors. Some states like California have proposed legislation encouraging pumped storage development. The industry needs to continue to advocate for changes in policies and market design that can help address these challenges.
"OWA is committed to maintaining, enhancing, and building new investment opportunities for the waterpower industry. Re-contracting Ontario’s existing waterpower assets and enabling new development, through the expansion of pumped storage and greenfield developments, continues to be our focus." - OWA
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