U.S. Weighs Pumped Storage for Energy Opportunities

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Rye Development is among a host of companies pursuing pumped-storage hydropower projects across the U.S., in one of the most significant revivals in interest for a power source in decades.

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Hydro Gets Another Look

Rye Development LLC is among the companies reviving interest in U.S.-based pumped-storage hydropower. While this type of energy storage accounts for roughly 22 gigawatts (GW) of power generation and 550 gigawatt-hours (GWh) of domestic energy storage, according to government data, a new project has not completed construction since 1985. But that might be changing: According to Industrial Info Resources data, more than $130 billion worth of pumped-storage projects have been proposed across the U.S.--although nearly all this amount is attributed to projects in their earliest development phases, where plenty of factors can alter or cancel projected investments.

Rye, which specializes in the development of low-impact hydropower, has made significant headway on two major projects so far this year.

In January, the U.S. Federal Energy Regulatory Commission (FERC) issued a 40-year license for the Goldendale Energy Storage Project in southernmost Washington State, on the banks of the Columbia River. Rye says the facility is designed to store electricity for up to 12 hours and generate 1.2 GW of on-demand electricity. More information--including key components, estimated investment values and necessary equipment--can be found in a detailed project report from the Industrial Info Resources Global Market Intelligence (GMI) Power Project Database.

The Goldendale project is being developed in response to regional needs: The Pacific Northwest Utilities Conference Committee (PNUCC) projects demand for electricity across the Pacific Northwest will grow 30% by 2035. Other proposed pumped-storage projects in the region include PacifiCorp's Saddle Mountains Pumped-Storage Project in Mattawa, Washington, about 100 miles north of Goldendale. PacifiCorp, a subsidiary of Berkshire Hathaway Incorporated, says the project would provide up to 1.3 GW of long-duration storage. More details can be found in an Industrial Info Resources project report.

FERC granted Saddle Mountains a preliminary permit in the fourth quarter of 2021. A preliminary permit, which can be issued for up to four years, does not authorize construction, according to FERC. Instead, it grants the developer priority of application for a license (sometimes called "first-to-file" status), allowing the developer to study the site and prepare a formal application for a license.

Rye's other major project to advance this year, the Lewis Ridge Pumped Storage Hydro Plant in Miracle, Kentucky, was granted a preliminary permit in 2022; the company applied for a license last summer. Earlier this month, two regional utilities--Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU), both subsidiaries of PPL Corporation--announced they would partner with Rye to develop the project.

"LG&E and KU are performing a thorough evaluation of the project and if proven effective, the utilities would then file a request with the Kentucky Public Service Commission for authority to further advance the project," Rye said in a press release. "Construction of the project could begin as early as 2027, with a commercial operation date of 2031."

Rye's announcement could be a bit too optimistic, as hydropower projects are notorious for lengthy delays. KU says it would own 63% of the project, while LG&E would own 37%. More details can be found in an Industrial Info Resources project report.

By the Numbers

• More than $130 billion: Total proposed investment in pumped-storage projects across the U.S.
• 40 years: Duration of license issued by FERC for the Goldendale Energy Storage Project
• 30%: Projected growth in Pacific Northwest power demand by 2035

A Long Road to Navigate

"Pumped storage projects move water between two reservoirs located at different elevations, to store energy and generate electricity," FERC explains on its website. "Generally, when electricity demand is low (e.g., at night), excess electric generation capacity is used to pump water from the lower reservoir to the upper reservoir. When electricity demand is high, the stored water is released from the upper reservoir to the lower reservoir through a turbine to generate electricity."

But pumped-storage projects in the U.S. have faced hurdles similar to those confronting nuclear power: hefty price tags, lengthy development periods (typically more than a decade) and a complex regulatory environment. The most recently built project, the Bath County Pumped Storage Station in Warm Springs, Virginia, began its licensing process in the mid-1970s, started construction in 1977 and was completed in 1985. For more details, readers can consult a plant profile.

Nonetheless, many developers are optimistic about their chances. Nelson Energy LLC, an Invenergy subsidiary, received a preliminary permit from FERC in early 2025 for its Iron Range project in Nashwauk, Minnesota. The project, to be built on the shores of Buckeye Lake, is designed to carry more than 660 megwatts. More recently, Hydro Green Energy LLC was granted a preliminary permit in January for its Lake Oroville project in Oroville, California, which is designed to carry 1.26 GW.

Neither project would begin construction until 2029, at the earliest. For more information, readers can consult detailed reports on the Iron Range and Lake Oroville projects.

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and full list of related plant profiles.

Industrial Info Resources also offers a full list of reports for pumped-storage projects that have been proposed across the U.S.

Key Takeaways

• FERC is granting preliminary permits and licenses to more pumped-storage energy proposals, including several projects from Rye.
• Two utilities in Kentucky also have taken interest in one of Rye's developments.
• Hefty price tags, lengthy development periods and complex regulations have hindered U.S. pumped-storage development.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).