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Oct 15, 2025
As electricity demand surges and intermittent renewable generation introduces greater variability to power flows on the grid, the need for flexible, long-duration (20-30+ hours), dispatchable energy storage has never been more urgent.
Pumped storage hydropower (PSH) has delivered energy storage capacity and transmission benefits to the United States since the 1920s. Today, are operational nationwide, providing 97% of the country鈥檚 utility-scale energy storage.
By 2050, the U.S. will require an estimated 鈥攎ore than double what exists today鈥攖o meet growing energy security and grid stability needs. However, realizing this potential is far from straightforward. PSH projects are among the most complex infrastructure undertakings鈥攄emanding not only technical excellence but, crucially, a foundation of trust, transparency, and collaboration among all delivery stakeholders.
Globally, PSH champions increasingly recognize that overcoming such barriers requires trust and transparent, proactive collaboration among developers, owners, engineers, contractors, and Original Equipment Manufacturers (OEMs). With a foundation of partnership in place, project teams are far better positioned to navigate complexity, accelerate delivery, and maximize value鈥攖ruly operating as one team.
At 91制片厂, we believe early investments in building trust and confidence among stakeholders are critical. Through the International Hydropower Association鈥檚 Working Group on De-risking Pumped Storage, we took a leading role in convening developers, owners, engineers, financiers, and policymakers to confront the unique risks associated with PSH and collaborate on to address them.
The following recommendations outline how early alignment, thoughtful planning, and tailored commercial structures鈥攇rounded in trust and transparency鈥攃an help stakeholders unlock and successfully deliver PSH projects.
Stakeholder engagement is a cornerstone of effective project planning. Early stakeholder engagement is critical to avoid rework, delays, and misalignment. We recommend that project development establish a successful project culture from day one by including:
At 91制片厂, we deploy proven tools and processes to support early collaboration, such as:
Given the long timelines and multi-billion-dollar budgets, PSH projects demand thoughtful, streamlined planning. To shorten development cycles and improve efficiency in planning, we recommend:
叠别肠丑迟别濒鈥檚 PSH and Hydro Playbook brings together decades of lessons learned in megaproject delivery, along with our deep engineering and construction expertise in a structured, gated development process. We are also investing in digital and AI-supported design and construction planning, enabling earlier modelling of design and execution scenarios.
PSH projects require a tailored commercial model and should reflect the collaborative foundation of the project. We believe that successful commercial strategies share these key principles:
Transparent risk assessments and cost estimates help ensure project budgets are realistic and provide greater certainty of outcome. We advocate for models that utilize concepts such as target cost compensation and change provisions based on a Geotechnical Baseline Report鈥攚hich build trust and accountability among all stakeholders.
PSH is foundational to the future of energy security and grid stability in the U.S. To unlock the next wave of PSH development, stakeholders must embrace a partnership-first approach. By building trust, aligning early, planning efficiently and robustly, and structuring contracts responsibly, we can deliver PSH projects that meet the needs of tomorrow鈥檚 grid and deliver lasting value to consumers.
