The Europe Pumped Hydro Storage Market was valued at USD 11.20 Billion in 2024. The Europe Pumped Hydro Storage Market industry is projected to grow from USD 12.18 Billion in 2025 to USD 29.69 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 9.3% during the forecast period (2025-2035).
The increasing demand for renewable energy and rising electricity demand are driving the growth of the Europe Pumped Hydro Storage Market.
As per the Analyst at MRFR, the increasing demand for renewable energy has led to a rising demand for pumped hydro storage market in Europe. With ambitious climate targets, such as the European Green Deal’s objective of achieving net-zero emissions by 2050, European nations are rapidly increasing their reliance on solar and wind energy.Â
According to Eurostat, in 2023, renewable energy accounted for over 24% of total energy consumption in the European Union, up from 22% in 2022, with Sweden leading at 66%. Germany, a major player in the sector, aims to derive 80% of its electricity from renewables by 2030, with wind energy expected to be the dominant source. Despite this progress, the intermittent nature of renewable sources introduces supply fluctuations, necessitating large-scale energy storage solutions.
 FIGURE 1: EUROPE PUMPED HYDRO STORAGE MARKET VALUE (2019-2035) USD BILLION
 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Technological advancements in pumped hydro storage (PHS) are unlocking substantial growth opportunities in the European market by enhancing efficiency, reducing environmental impacts, and enabling deployment across a wider range of geographical locations. As Europe transitions toward a low-carbon energy future, the demand for flexible, long-duration energy storage solutions is rising, positioning innovation in PHS as a critical driver for renewable energy integration and grid stability.Â
One of the most notable advancements is the development of closed-loop and underground PHS systems, which address environmental concerns and reduce reliance on natural water bodies. Unlike traditional open-loop systems that depend on direct access to rivers or reservoirs, closed-loop PHS operates with self-contained water reservoirs, making it a viable option for regions with limited water resources or stringent environmental regulations.Â
Similarly, underground PHS systems utilize abandoned mines, caverns, or artificial reservoirs, optimizing land use while minimizing ecological disruption. In addition, advancements in turbine and pump technologies, such as variable-speed pump-turbines, are significantly improving the operational flexibility of PHS plants. These innovations enable faster response times, which are essential for balancing loads as Europe’s grid increasingly incorporates intermittent renewable energy sources like wind and solar power. Furthermore, the integration of advanced digital monitoring systems, AI-driven predictive maintenance, and smart grid technologies is optimizing plant performance, reducing downtime, and extending the lifespan of assets.
Based on Plant Configuration, Pumped Hydro Storage market was segmented into Open-Loop Systems, Closed-Loop Systems. The Open-Loop Systems segment dominated the Europe market in 2024, while the Open-Loop Systems segment is projected to be the fastest–growing segment during the forecast period. Open loop pumped hydro storage systems are designed to operate in direct connection with natural water sources, such as rivers, lakes, or reservoirs.Â
These systems involve the transfer of water between an upper and a lower reservoir, with water sourced externally rather than being continuously recycled. During periods of low electricity demand, surplus energy is used to pump water to the upper reservoir. When electricity demand increases, the stored water is released back through turbines to generate power.Â
Open-loop systems are advantageous due to their cost-effectiveness and the ability to integrate with existing hydrological infrastructure. However, they are subject to environmental regulations and potential fluctuations in water availability, which may be influenced by seasonal variations, drought conditions, or regulatory restrictions. As a result, extensive environmental assessments are required before implementation to mitigate ecological impacts.
Based on Capacity Pumped Hydro Storage market was segmented into Small-Scale Plants, Medium-Scale Plants, Large-Scale Plants. The Large-Scale Plants segment dominated the Europe market in 2024, while the Small-Scale Plants segment is projected to be the fastest–growing segment during the forecast period. Large-scale pumped hydro storage plants have a capacity exceeding 500 MW and are critical components of national and regional energy infrastructure. These facilities are primarily designed to provide bulk energy storage, grid stability, and long-duration power supply.Â
Large-scale plants are often integrated into existing hydroelectric systems or developed in areas with significant elevation differences to optimize energy efficiency. They play a vital role in balancing large-scale renewable energy generation, mitigating fluctuations in wind and solar output, and enhancing grid reliability. While large-scale pumped hydro storage requires substantial capital investment and extensive environmental assessments, it remains one of the most efficient and long-lasting energy storage technologies. These plants contribute to energy security by offering high-capacity, long-duration storage solutions that support the transition to a more sustainable and resilient power grid.
FIGURE 2: EUROPE PUMPED HYDRO STORAGE MARKET SHARE BY CAPACITY 2024 AND 2035 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on End-Use, the Europe Pumped Hydro Storage Market is Segmented into Residential, Commercial, Industrial, Utility. The Utility segment dominated the Europe market in 2024, while the Residential segment is projected to be the fastest–growing segment during the forecast period. Utility-scale pumped hydro storage is the most common and widely deployed application, serving as a critical component of national and regional power grids.Â
These large-scale facilities help balance electricity supply and demand by storing excess energy generated from renewable sources such as wind and solar. Utilities rely on pumped hydro storage to provide frequency regulation, peak load management, and grid stability. These systems play a crucial role in long-duration energy storage, ensuring a consistent power supply even during periods of low renewable energy generation.Â
Utility-scale pumped hydro projects require significant investment, extensive planning, and favorable geographical conditions, including suitable elevation differences and water availability. Despite the high upfront costs, they remain one of the most efficient and cost-effective energy storage solutions for large-scale electricity systems, contributing to grid resilience and the transition to low-carbon energy sources.
Based on Country, the Europe Pumped Hydro Storage Market is Segmented into Germany, UK, France, Russia, Italy, Spain, Netherlands, Switzerland, Norway, Rest of Europe. The Germany dominated the Europe market in 2024, while the Norway is projected to be the fastest–growing segment during the forecast period. In 2024, Germany held the largest share of the Europe Pumped Hydro Storage Market, driven by its strong focus on renewable energy integration and grid stability.Â
The country has an extensive renewable energy portfolio, particularly in wind and solar power, which increases the need for large-scale storage solutions to balance supply and demand. Pumped hydro storage plays a critical role in Germany’s energy transition strategy, supporting grid flexibility, energy security, and peak load management. Government initiatives, investments in modernizing existing plants, and the country’s commitment to phasing out nuclear and coal power further strengthen Germany’s position as the leading market in Europe.
Many Europe, regional, and local vendors characterize the Europe Pumped Hydro Storage Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.
The major competitors in the market are Andritz, Enel S.P.A, Siemens, Iberdrola S.A Group, Voith GMBH, Statkraft As, AFRY Ab, Gugler Water Turbines GMBH, Repsol, EDF among others. The Europe Pumped Hydro Storage Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.
April 2024: Iberdrola has entered a joint venture with Ørsted, a Danish energy company, to explore offshore wind and energy storage integration. The partnership focuses on combining offshore wind energy with energy storage solutions, including PHS, to meet renewable energy goals.
August 2023: The ANDRITZ Advanced HydroMatrix® turbine technology upgrade, launched in Q3 2023, represents a significant advancement in small hydropower technology. The system combines innovative hydraulic design with state-of-the-art digital capabilities to create a more efficient and environmentally conscious power generation solution.
| Report Attribute/Metric | Details |
| Market Size 2024 | USD 11.20 Billion |
| Market Size 2025 | USD 12.18 Billion |
| Market Size 2035 | USD 29.69 Billion |
| Compound Annual Growth Rate (CAGR) | 9.3% (2025-2035) |
| Base Year | 2024 |
| Forecast Period | 2025-2035 |
| Historical Data | 2019-2023 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | By Plant Configuration, By Capacity, By End Use |
| Geographies Covered | Europe |
| Countries Covered | The Germany, UK, France, Russia, Italy, Spain, Netherlands, Switzerland, Norway, Rest of Europe |
| Key Companies Profiled | Andritz, Enel S.P.A, Siemens, Iberdrola S.A Group, Voith GMBH, Statkraft As, AFRY Ab, Gugler Water Turbines GMBH, Repsol, EDF |
| Key Market Opportunities | ·        Advancement in pumped hydro storage technology |
| Key Market Dynamics | ·        Increasing demand for renewable energy ·        Rising electricity demand |
Frequently Asked Questions (FAQ):
The Europe Pumped Hydro Storage Market was valued at USD 11.20 Billion in 2024.
The Utility segment by End-Use holds the largest market share and grows at a CAGR of 9.1% during the forecast period.
Germany holds the largest market share in the Europe Pumped Hydro Storage Market.
Andritz, Enel S.P.A, Siemens, Iberdrola S.A Group, Voith GMBH, Statkraft As, AFRY Ab, Gugler Water Turbines GMBH, Repsol, EDF are prominent players in the Europe Pumped Hydro Storage Market.
The Open-Loop Systems segment dominated the market in 2024.
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Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
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