South America Pumped Hydro Storage Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 1 gigawatt |
| Market Volume (2029) | 1.30 gigawatt |
| CAGR (2024 - 2029) | 5.40 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Pumped Hydro Storage Market Analysis
The South America Pumped Hydro Storage Market size in terms of installed base is expected to grow from 1 gigawatt in 2024 to 1.30 gigawatt by 2029, at a CAGR of 5.40% during the forecast period (2024-2029).
- Over the long term, increasing government targets to integrate renewable energy coupled with significant hydropower potential is likely to drive the pump hydro storage market’s growth during the forecast period.
- On the other hand, penetration of other energy storage techniques is expected to hamper the growth of the South American pump hydro storage market during the forecast period.
- Nevertheless, an increase in technological advancements is likely to create lucrative growth opportunities for the South American pump hydro storage market during the forecast period.
- Argentina is expected to dominate the market due to its large population, increasing electricity demand, and a higher number of power outages, which are expected to propel the need for pump hydro storage during the forecast period.
South America Pumped Hydro Storage Market Trends
Closed-loop is Expected to Dominate the Market
- The closed-loop pump hydro storage system is anticipated to experience notable growth in the South American market, driven by several strategic factors that underscore the region's evolving energy landscape. One of the key drivers is the increasing emphasis on renewable energy sources, mainly hydropower, as South America boasts abundant water resources. Closed-loop systems, characterized by their closed-circuit design, offer an efficient means of harnessing and storing energy, aligning well with the continent's commitment to sustainable energy practices.
- According to the International Renewable Energy Agency, hydropower installation has increased significantly in the region in the past few years. Between 2016 and 2023, the growth rate in capacity addition was recorded at around 10%, signifying the increasing adoption of hydropower, which in turn can drive the demand for pump storage.
- Furthermore, the inherent flexibility of closed-loop pump hydro storage positions it as a reliable solution for managing the intermittency associated with renewable energy generation. As South American countries continue to integrate diverse renewable sources like wind and solar into their energy portfolios, the need for adequate energy storage becomes paramount. Closed-loop systems contribute significantly to grid stability and reliability due to their ability to store excess energy during periods of low demand and release it during peak demand.
- The regulatory landscape also plays a crucial role in driving the growth of closed-loop pump hydro storage in South America. Governments across the region are increasingly recognizing the importance of energy storage solutions in achieving energy security and sustainability goals. Supportive policies and incentives aimed at promoting closed-loop pump hydro storage projects create a conducive environment for investments, driving the market's expansion.
- For instance, in May 2023, Engie Brasil Energia has awarded Andritz to modernize the 424 MW Jaguara hydropower plant. Located on the Grande River in Rifaina, the hydropower plant has been in operation since 1971. The project aims at the extension of asset lifetime and its performance improvement. The modernization project is expected to be completed by the end of 2028.
- Additionally, the scalability of closed-loop pump hydro storage systems aligns with the region's evolving energy requirements. The modular nature of these systems allows for flexible capacity additions, enabling stakeholders to adapt to changing energy demand dynamics. This scalability factor is particularly significant in the context of South America's diverse energy needs and the potential for cross-border energy trading.
- Therefore, as per the points mentioned above, the closed-loop segment is expected to dominate the market during the forecast period.
Argentina is Expected to Dominate the Market
- The increasing focus on renewable energy sources, including hydropower, aligns seamlessly with the attributes of pump hydro storage. As Argentina strives to diversify its energy mix and reduce dependency on traditional fossil fuels, the versatility and reliability of pump hydro storage emerge as pivotal components in ensuring a sustainable and resilient energy infrastructure.
- The abundant hydropower potential in Argentina further solidifies the growth prospects for pump hydro storage. With a vast array of water resources at its disposal, the country possesses an ideal environment for the development of pump hydro storage projects. These projects can leverage existing hydroelectric infrastructure, contributing not only to energy storage but also enhancing the overall efficiency and productivity of the nation's hydropower resources.
- Moreover, Argentina is the leading country in the installed capacity pump hydro storage. According to the International Renewable Energy Agency, as of 2023, the country had about 974 MW of pump hydro storage capacity, with two pump hydro storage projects of an installed capacity of about 750 MW and another capacity of 224 MW.
- The evolving regulatory landscape and government support for renewable energy initiatives play a crucial role in shaping the trajectory of pump hydro storage in Argentina. The government's commitment to fostering sustainable energy practices, coupled with incentives and policies aimed at promoting energy storage solutions, creates a conducive environment for the growth of pump hydro storage projects. This support is instrumental in attracting investments and driving the implementation of such projects within the country.
- For instance, in September 2023, the province of Córdoba in Argentina initiated a tender process for a USD 100 million contract aimed at refurbishing a 750 MW pumped storage hydropower plant. The goal is to revitalize the Rio Grande facility, currently operating at approximately half of its designated capacity, and restore its full production potential. Epec, the publicly owned energy company of Córdoba, is spearheading the tender process and overseeing the operation of the plant. The proposed refurbishment works are anticipated to span five years, with the objective of extending the lifespan of the Rio Grande plant by a minimum of 40 years.
- Moreover, the growing need for grid stability and reliability provides a compelling case for the adoption of pump hydro storage in Argentina. As the country experiences shifts in energy demand and incorporates a more significant share of intermittent renewable sources, the ability of pump hydro storage to act as a stabilizing force on the grid becomes increasingly valuable. The technology's capacity to store excess energy during periods of low demand and release it during peak demand aligns with the nation's requirements for a flexible and resilient energy system.
- Therefore, as per the points mentioned above, the country is expected to witness significant growth during the forecast period.
South America Pumped Hydro Storage Industry Overview
The South American pump hydro storage market is semi-fragmented. Some of the major players in the market (in no particular order) include Voith GmbH & Co KGaA, ContourGlobal PLC, Andritz AG, Vale S.A., and Siemens AG.
South America Pumped Hydro Storage Market Leaders
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Voith GmbH & Co KGaA
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Andritz AG
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Vale S.A.
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Siemens AG
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ContourGlobal plc
*Disclaimer: Major Players sorted in no particular order
South America Pumped Hydro Storage Market News
- June 2024: Colbun SA planned to use the Pacific Ocean to draw water into a pumped-storage hydropower plant (HPP). The project is likley to be in the northern part of Chile, which is expected to have a capacity of around 800 MW, with a cost of around USD 1.4 billion.
- September 2023: Argentine launched a USD 100 million tender to overhaul a 750MW pumped storage hydropower plant. The overhaul process is expected to recover the full production potential of the facility, Río Grande, which is running at around half of its nameplate capacity.
South America Pumped Hydro Storage Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Pumped Hydro Storage Installed Capacity and Forecast, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Growing Emphasis on Renewable Energy Integration
4.5.1.2 Significant Hydropower Potential
4.5.2 Restraints
4.5.2.1 Competition From Other Energy Storage Technologies
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
4.8 Investment Analysis
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Open-loop
5.1.2 Closed-loop
5.2 By Geography
5.2.1 Brazil
5.2.2 Argentina
5.2.3 Colombia
5.2.4 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Voith GmbH & Co KGaA
6.3.2 Norte Energia SA
6.3.3 ContourGlobal PLC
6.3.4 Centrais Eletricas Brasileiras SA
6.3.5 Andritz AG
6.3.6 Vale SA
6.3.7 Siemens AG
6.3.8 Mitsubishi Heavy Industries Ltd
6.3.9 General Electric Company
6.3.10 Iberdrola SA
- *List Not Exhaustive
6.4 Market Ranking/Share (%) Analysis
6.5 List of Other Prominent Companies
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Technological Advancement
South America Pumped Hydro Storage Industry Segmentation
Pumped storage hydrostorage is a type of hydroelectric energy storage. It combines two water reservoirs at different elevations that can generate power as water moves down from one to the other (discharge), passing through a turbine.
The South American pumped storage hydro market is segmented by type and geography. The type is segmented into open-loop and closed-loop. The report also covers the market size and forecasts for the South American pumped hydro storage market across the major regions. For each segment, market sizing and forecasts were made based on installed capacity.
| By Type | |
| Open-loop | |
| Closed-loop |
| By Geography | |
| Brazil | |
| Argentina | |
| Colombia | |
| Rest of South America |
South America Pumped Hydro Storage Market Research FAQs
How big is the South America Pumped Hydro Storage Market?
The South America Pumped Hydro Storage Market size is expected to reach 1 gigawatt in 2024 and grow at a CAGR of 5.40% to reach 1.30 gigawatt by 2029.
What is the current South America Pumped Hydro Storage Market size?
In 2024, the South America Pumped Hydro Storage Market size is expected to reach 1 gigawatt.
Who are the key players in South America Pumped Hydro Storage Market?
Voith GmbH & Co KGaA, Andritz AG, Vale S.A., Siemens AG and ContourGlobal plc are the major companies operating in the South America Pumped Hydro Storage Market.
What years does this South America Pumped Hydro Storage Market cover, and what was the market size in 2023?
In 2023, the South America Pumped Hydro Storage Market size was estimated at 0.95 gigawatt. The report covers the South America Pumped Hydro Storage Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South America Pumped Hydro Storage Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South America Pumped Hydro Storage Industry Report
Statistics for the 2024 South America Pumped Hydro Storage market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Pumped Hydro Storage analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
South America Pumped Hydro Storage Market Report Snapshots
