Pumped storage hydropower is uniquely positioned to deliver the 24/7, reliability-sensitive power that data centers require, particularly in the Western United States, which is seeing a large increase in data center construction, a new report from the National Hydropower Association said.
“PSH, initially developed to store excess baseload electricity, has become a reliable way to firm up more variable renewable energy sources in the modern era. These simple yet effective ‘water batteries’ are instrumental in balancing electricity supply and demand,” NHA said in a news release about the report.
More than 60,000 megawatts of pumped storage capacity are currently in the regulatory pipeline at the Federal Energy Regulatory Commission, with roughly 85 percent located in the Western U.S., NHA noted.
A recent assessment of untapped opportunities for environmentally benign “closed-loop” pumped storage found more than 15,000 sites in the United States, “yet few new projects are under construction, threatening the grid’s ability to meet growing demand," NHA said.
The report calls for swift federal action, including:
• Modernizing hydropower licensing under the Federal Power Act
• Advancing bipartisan tax legislation to support hydropower upgrades
• Directing FERC to reform market rules to properly value long-duration storage
• Leveraging Department of Energy loan guarantees and grid resilience programs to reduce financing risk
