...

Rystad Energy forecasts massive growth in pumped hydro across Southeast Asia

Economy Materials 17 June 2024 09:39 (UTC +04:00)
Maryana Ahmadova
Maryana Ahmadova
Read more

BAKU, Azerbaijan, June 17. Currently standing at 2.3 GW, pumped hydro capacity in Southeast Asia is projected to skyrocket to 18 GW by 2033, drawing investments estimated between $12-70 billion, says the research by Rystad Energy, Trend reports.

Recent assessments by the company underscore a dramatic expansion of pumped-storage hydropower (pumped hydro) across Southeast Asia, marking a pivotal shift in regional energy strategies. This mature technology for large-scale energy storage is poised to enhance grid reliability as the region accelerates its transition away from fossil fuels toward renewable sources.

As such, these figures highlight the critical role of reliable, green energy storage solutions amid efforts to decrease reliance on fossil fuel-based power generation, which currently dominates 64 percent of the region's electricity output.

The region is actively advancing pumped hydro projects, with 2.7 GW under construction and an additional 13.3 GW in various stages of development. This expansion is crucial for enhancing the flexibility of electricity systems, crucial as Southeast Asia integrates more solar and wind power.

State-owned utility companies dominate pumped hydro projects across Indonesia, the Philippines, Vietnam, and Thailand, Rystad Energy notes. The top three developers in Southeast Asia all boast significant government ownership, highlighting this trend. Indonesia's state-owned utility company, PLN, leads the region with 3.7 GW of pumped hydro projects in the pipeline.

However, as the research warns, the high upfront costs and lengthy return on investment timelines make pumped hydro projects less appealing to private firms. Moreover, the unpredictable licensing process can delay project timelines and increase risks for potential developers.

Leading this expansion are the Philippines and Thailand. Thailand currently leads in existing capacity but will soon be overtaken by the Philippines, which has 5.7 GW in upcoming projects. Vietnam and Indonesia are also investing significantly, with approximately 4.5 GW and 4.2 GW in planned capacity, respectively. Thailand continues to contribute with an additional 1.6 GW slated for development through 2033.

Tags:
Latest

Latest