The National Energy Administration has identified the three characteristics of the most mature technology, optimal economic efficiency, and the most suitable conditions for large-scale development as the regulation of pumped storage energy. In the grand game of dual carbon goals and the construction of new power systems, it is not only a stabilizer for wind and solar fluctuations, but also a giant power bank for the power grid. With the clear goal of adding about 100 million kilowatts of new production in the 15th Five Year Plan, this green infrastructure project that concerns national energy security is entering an unprecedented period of strategic opportunities.

The prelude to the westward expansion of the trillion dollar market

Data does not lie. As of the end of August 2025, China's pumped storage power stations have been completed and put into operation with a scale of 62.365 million kilowatts, achieving the established target of 62 million kilowatts by 2025 ahead of schedule. But this is just the prologue. According to the report of the Water Resources Planning and Design Institute, the total exploitable resources in China are as high as 1.6 billion kilowatts, but the current level of development is less than 4%.

The next decade will be a period of explosive production. According to the three-step strategy, the total scale of production will double to 120 million kilowatts by 2030, and a modern industrial cluster will be formed by 2035. The landscape is undergoing profound changes, with the top quality sites in the eastern region nearing completion, and the central and western regions taking over as core incremental areas with abundant financial resources. Expert Zhao Zenghai believes that pumped storage power stations are gradually developing on a large scale from east to west. In this map reconstruction, giant power stations will be erected around the Three North regions and new energy bases, becoming the steel backbone supporting the safety of the power grid.

The resource magic of selecting the best from the best

As traditional high-quality websites become increasingly scarce, technological innovation becomes the golden key to unlocking the treasure trove of resources. The 421 million kilowatt key implementation projects selected by the national census are the essence of selecting the best from the 1.6 billion kilowatt resources. But this does not mean that development has stopped, on the contrary, it has given rise to three new types of high-quality resources.

Firstly, hybrid pumped storage energy relies on chicken to lay eggs. By relying on the construction of existing hydropower stations, investment can be reduced by 20% to 30%, and the cycle can be shortened by 2-3 years. The world's largest two river mouth mixed storage power station under construction, with an installed capacity of 4.2 million kilowatts, is a testament to this. Secondly, mine renovation can turn waste into treasure. The Luanping Power Station in Hebei Province has achieved a win-win situation between ecological restoration and economic benefits by utilizing iron ore pits as reservoirs. Thirdly, breaking the ice in high-altitude restricted areas. With technological breakthroughs in China's Xidian 4000 meter altitude complete set of switchgear, high-altitude power stations such as Fukang in Xinjiang have not only survived, but also achieved bidirectional regulation. Technology turns what was once impossible into high-quality assets.

From relying on policies to relying on skills

If scale expansion is face saving, mechanism reform is the inside. For a long time, the electricity pricing mechanism has been the guiding baton for the development of the industry. From the establishment of capacity electricity pricing in Document No. 633 of 2021 to the implementation of Document No. 114 of January 2026, the industry officially bid farewell to the big pot and entered a new stage driven by marketization.

The core of Document No. 114 lies in precise policy implementation, providing reassurance for existing projects, dual protection for incremental projects, and comprehensive market benchmarking for future projects. This change has been vividly validated at the Meizhou Pumped Storage Power Station in Guangdong. As the first crab eater, it fully participates in the spot market and actively generates revenue through low pumping and high consumption. As of August 2025, the power station has accumulated over 1.74 billion kilowatt hours of traded electricity, responding to more than 4200 market launches. This mode of production and market entry forces enterprises to reduce costs and increase efficiency, allowing pumped storage and new energy storage to compete fairly under the same rules. Keywords: energy storage, new energy, pumped storage

The future has arrived. Driven by both policy and market, China's pumped storage system is taking technology as its wing and the market as its track, writing a magnificent chapter of energy transformation in the vast mountains and rivers. This is not only a victory in installed capacity, but also a vivid footnote to the modernization of China's energy governance capabilities.Editor/Cheng Liting