The historic transformation of Europe’s energy system is in full swing. By 2050, around 86% of generation capacity will come from variable renewable sources such as wind and solar. To effectively integrate this clean energy, Europe urgently needs long-term electricity storage in order to balance supply and demand, stabilize markets, and reduce dependence on fossil fuel imports.
Pumped-storage hydropower is a proven, scalable, and cost-effective solution. It stores surplus renewable energy and releases it during times of higher demand. Pumped-storage plants provide flexibility, resilience, and reliability to the European power system.
This is why the International Hydropower Association (IHA), together with Eurelectric, has launched the Paris Pledge—a collective call to action developed in close collaboration with senior representatives from European utilities and companies engaged in hydropower development. The pledge commits the sector to unlocking the potential of pumped-storage hydropower (PSH) and calls on European and national policymakers to create suitable conditions for long-term energy storage.
To realize the potential of nearly 35 GW of pumped-storage projects in the EU, urgent regulatory support is needed at both European and national levels, including:
At the European level:
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Developing a dedicated initiative to promote electricity storage;
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Ensuring that legislation addresses long-duration electricity storage separately from short-term storage and other storage solutions;
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Promoting the adoption of the Renewable Energy Directive (RED III) and the market design reform.
At the national level:
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Implementing the latest legislative directives and reforms;
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Rewarding the provision of system services and ensuring security of supply across all timeframes; where revenue-stabilization mechanisms exist, ensuring participation of PSH;
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Removing double grid charges on energy storage technologies to improve economic viability;
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Introducing accelerated permitting procedures for the construction of PSH plants.
For more information on the challenges and achievements of the hydropower sector in energy storage, you can explore further here.
