China set to surpass 2030 pumped storage hydro target by over 8%
China is on course to exceed its 2030 pumped storage hydropower target by more than 8% and could potentially reach 130 gigawatts (GW) by the end of the decade, according to the International Hydropower Association (IHA).
The world's second-largest economy added 7.75 GW of pumped hydro capacity in 2024, bringing its total installed capacity to 58.69 GW, the IHA announced on Wednesday. The association revealed that more than 200 GW of such projects are currently under construction, representing a third of all pumped hydro developments worldwide.
China has emphasised the need for increased investment in energy storage technology, which plays a crucial role in balancing supply and demand when wind and solar installations produce electricity beyond the grid's capacity to distribute effectively.
The country achieved remarkable success in renewable energy last year, breaking its own records for new wind and solar power installations and reaching its 2030 target six years ahead of schedule.
Government policies that discourage electricity consumption during peak demand periods through higher pricing have created profitable opportunities for storage providers, including pumped hydro operators, who can sell stored power at premium rates during high-demand periods.
Globally, hydropower capacity expanded by 24.6 GW in 2024, comprising 16.2 GW of conventional hydropower and 8.4 GW of pumped hydro, the IHA reported. An additional 475 GW of conventional projects are in various development stages worldwide.
The IHA noted that "this year's world hydropower outlook shows that global new capacity is accelerating after several years of stagnation."
However, hydropower projects in the East Asia and Pacific region outside China face significant challenges, including financing constraints, substantial upfront costs, and extended payback periods that discourage private sector participation.
The association highlighted that "regulatory and permitting delays are also hampering progress in countries such as Australia, Indonesia and Vietnam, where complex approval processes, land rights issues and environmental assessments create uncertainty."
These obstacles contrast sharply with China's rapid progress in expanding its pumped storage hydropower infrastructure, positioning the nation as a global leader in renewable energy storage solutions.
