Southeast Asia’s pumped hydro capacity to reach 18 GW by 2033

The sector’s investment will reach between $12b to $70b.

The pumped-storage hydro capacity of Southeast Asia is expected to grow by nearly eightfold in less than a decade to reach 18 gigawatts (GW) by 2033 from the current 2.3 GW as the technology is expected to enhance electricity system flexibility.

In a report, Rystad Energy said pumped hydro, which will boost grid reliability, as fuel generators are being replaced by renewable energy, is expected to attract a total investment of $12b and $70b.

“Pumped hydro shines as a promising solution to meet growing energy storage demands, essential for maintaining grid reliability as Southeast Asia incorporates more variable renewable sources such as solar and wind,” Nevi Cahya Winofa, Renewables and Power Analyst at Rystad Energy, said.

“Nevertheless, policymakers and developers must implement effective risk management to address the various challenges and uncertainties inherent in the operation of pumped hydro ensuring their seamless integration into the region’s energy landscape,” she added.

According to Rystad Energy, 2.7 GW of pumped hydro storage projects are under construction whilst around 13.3 GW are in various stages of development.

Thailand is leading in terms of existing capacity, but the Philippines is poised to surpass its neighbour with around  5.7 GW of capacity in the pipeline.

Vietnam and Indonesia have around 4.5 GW and 4.2 GW of pipeline projects, respectively, whilst Thailand is expected to develop around 1.6 GW.