Southeast Asia’s Pumped-Storage Hydropower Set to Soar Eightfold by 2033

Southeast Asia’s Pumped-Storage Hydropower Set to Soar Eightfold by 2033

Pumped-storage hydropower capacity in Southeast Asia is expected to jump to 18 gigawatts (GW) by 2033, from just 2.3 GW today, as pumped hydro is set to play an increasingly important role in the region’s energy transition from fossil fuels, independent energy research company Rystad Energy said in a report on 17 June.

The nearly eightfold surge in pumped hydro capacity is set to attract estimated total investment of between US$12 billion and US$70 billion, according to Rystad Energy.

At present, fossil fuels account for 64 percent of Southeast Asia’s power generation, while reliable and green energy storage solutions are crucial to boost the electricity system’s flexibility, particularly as more solar and wind power is being added to the grids.

A total of 2.7 GW of pumped hydro storage is currently under construction in Southeast Asia, and another 13.3 GW are in various stages of development. The planned expansion will diversify the region’s renewable energy landscape, currently centered on the Philippines and Thailand. While Thailand boasts the most existing capacity for now, the Philippines will soon surpass it with about 5.7 GW of capacity in the pipeline, Rystad Energy’s projections show.

Vietnam and Indonesia are also investing in pumped hydro and have 4.5 GW and 4.2 GW of pending capacity, respectively. Thailand will also contribute to the region’s growth through 2033, with an additional 1.6 GW slated for development.

“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,” said Nevi Cahya Winofa, Renewables and Power analyst, Rystad Energy.
 
“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.”   

Published: 21-06-2024