Nation playing key role in world hydropower market

Pumped hydro storage projects use electricity during periods of low demand to pump water to an upper reservoir, which is then released to generate electricity during peak demand periods, earning them the nickname "super charging stations".

Zhang Zongliang, an academician at the Chinese Academy of Engineering, expects significant market growth in the sector, driven by the increasing integration of wind and solar power into the energy system.

Pumped hydro storage is a vital component of clean energy hubs, facilitating the ongoing expansion of renewable energy sources, he said.

According to the China Renewable Energy Engineering Institute, 23 new pumped hydro storage projects were approved last year in China, which further solidified the country's position as the world leader in pumped hydro storage for the ninth consecutive year.

The IHA said China is set to exceed its 2030 pumped storage hydropower target by more than 8 percent and potentially reach 130 GW by the end of the decade.

China's total installed hydropower capacity has reached approximately 436 GW, accounting for more than three-quarters of Asia's total capacity, it said.

In addition to hydropower, China continues to maintain its global leadership in renewable energy sources such as wind and solar power. By the end of 2024, China's total installed wind and solar power capacity had exceeded 1,200 GW, achieving its national target for wind and solar power capacity originally set for 2030 ahead of schedule.

The government's policy of raising electricity prices during peak demand times has incentivized storage providers, including pumped hydro operators, said Lin.

This allows them to profit from selling stored power at higher prices, further boosting the development of the sector, he said.

China has consistently increased its investment in hydropower development in recent years.

State Grid Corp of China's new energy subsidiary completed a 36.5 billion yuan capital increase and share expansion project in late July.

The substantial capital injection will be entirely allocated to the construction of pumped-hydro energy storage projects, an initiative seen as crucial for promoting high-quality development in the pumped-hydro sector, accelerating the establishment of a new type of power system, and contributing to the stable growth of the national economy, said Zhang Zhigang, executive chairman of the company.

The company currently has 75 pumped hydro power stations in operation or under construction, with a total capacity of 94 million kW, making it the world's largest operator of pumped hydro facilities.

According to the China Renewable Energy Engineering Institute, since the commissioning of China's first pumped hydro station in 1968 — almost 90 years after the world's first such facility was established in Zurich, Switzerland — the nation's expertise in this technology has matured through decades of practical application and technological accumulation.

China has also come up with a comprehensive industrial system and specialized development model, covering standard formulation, planning and design, engineering construction and equipment, it said.

zhengxin@chinadaily.com.cn