Pumped-storage Hydroelectricity

Pumped-storage hydroelectricity (PSH) is a type of hydroelectric power generation used by some power plants for load balancing. The method stores energy in the form of potential energy of water, pumped from a lower elevation reservoir to a higher elevation. Low-cost off-peak electric power is used to run the pumps. During periods of high electrical demand, the stored water is released through turbines to produce electric power. Although the losses of the pumping process makes the plant a net consumer of energy overall, the system increases revenue by selling more electricity during periods of peak demand, when electricity prices are highest.

Pumped storage is the largest-capacity form of grid energy storage available, and, as of March 2012, the Electric Power Research Institute (EPRI) reports that PSH accounts for more than 99% of bulk storage capacity worldwide, representing around 127,000 MW. PSH reported energy efficiency varies in practice between 70% and 80%, with some claiming up to 87%.