Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
Asia-Pacific energy companies have approximately 71 gigawatts
(GW) of pumped hydro energy storage projects in the planning or
construction stages as of the start of 2021, according to IHS
Markit's power assets tracking service.
Mainland China is by far the largest contributor, with 52.3 GW
of pumped hydro storage under construction or planned. Australia is
next in line, with about 7.9 GW of projects.
Pumped hydro storage allows excess power to be saved by pumping
water from lower to upper reservoirs when electricity demand is
low, then releasing it back down to generate electricity when
consumption is high—a zero-carbon source of power that will
help China to meet power demand while not exceeding its emissions
targets.
While State Grid Corp. of China, the largest power provider in
the country, and other operators have aggressive pumped storage
plans, IHS Markit Senior Research Analyst Megan Anderson Jenkins
does not see much room for growth beyond the current pipeline.
"It's important to note the increasing difficulty in
construction and development of these projects in China. As
suitable project sites are becoming scarcer, development costs are
rising," she said, adding: "This is tempered somewhat by local
governments who tend to favor large infrastructure projects like
pumped storage to boost local economic activity."
IHS Markit is developing a new report, expected this quarter, on
China's pumped storage outlook and emerging alternatives as
opportunities are tapped. "Overall, we expect the new project
construction growth rate to slow gradually until 2040, after which
we do not expect any more pumped hydro energy storage capacity to
come online. At the same time, battery storage costs will steadily
decline, resulting in batteries displacing pumped hydro as the
dominant storage technology," Jenkins said.
According to a report by the International
Hydropower Association published last year, approximately 158 GW of
pumped storage hydropower was operational around the world at the
end of 2019. The top three countries account for about half of that
capacity: China (30.3 GW); Japan (27.6 GW); and the US (22.9
GW).
Posted 22 January 2021 by Kevin Adler, Editor, Climate & Sustainability Group, IHS Markit
