Pump it up: Southeast Asia bets big on pumped hydro with 18 GW by 2033 - Rystad Energy
Published December 17, 2025
Pumped Hydro Energy in Southeast Asia: A Future Investment of 18 GW by 2033
Southeast Asia is positioning itself to significantly enhance its energy storage capabilities through pumped hydro energy, with an ambitious target of 18 gigawatts (GW) set for 2033. According to a recent report by Rystad Energy, this initiative is part of a broader strategy to integrate more renewable energy sources into the region’s power grid, addressing both energy demand and sustainability goals.
Pumped hydro storage (PHS) is a well-established and efficient method of energy storage, utilizing two water reservoirs at different elevations. During periods of low electricity demand, excess energy is used to pump water from the lower reservoir to the upper reservoir. When demand increases, the stored water is released back down, passing through turbines that generate electricity. This technology not only provides a reliable source of energy but also helps to stabilize the grid by balancing supply and demand.
The Current Landscape of Pumped Hydro in Southeast Asia
As of now, Southeast Asia has a limited amount of pumped hydro capacity, primarily concentrated in countries like Thailand and Malaysia. However, the region is poised for a significant expansion of this technology. Rystad Energy's analysis indicates that the total installed capacity for pumped hydro in Southeast Asia is expected to grow from approximately 3 GW today to 18 GW by the year 2033. This increase reflects the growing recognition of pumped hydro's role in enabling a transition to a more sustainable energy system.
Countries in the region are exploring various projects to harness their geographical advantages, such as mountainous terrains and abundant water resources, to develop new pumped hydro facilities. For instance, Thailand has already initiated several projects aimed at enhancing its pumped hydro capacity, while Malaysia is also considering investments in new facilities. Other countries, including Indonesia and the Philippines, are assessing their potential for similar developments.
Investment and Policy Support
The projected growth in pumped hydro capacity is expected to be supported by significant investments and policy frameworks aimed at promoting renewable energy. Governments in Southeast Asia are increasingly recognizing the importance of energy storage solutions in achieving their renewable energy targets. For example, the Association of Southeast Asian Nations (ASEAN) has set ambitious goals for increasing the share of renewable energy in the region’s energy mix, which includes a focus on energy storage technologies.
Investors are also showing a growing interest in pumped hydro projects, driven by the potential for stable returns and the increasing demand for clean energy solutions. Rystad Energy forecasts that the total investment in pumped hydro projects in Southeast Asia could reach approximately $10 billion by 2033. This influx of capital is expected to facilitate the development of new projects and the modernization of existing facilities, further enhancing the region's energy infrastructure.
Environmental and Economic Benefits
The expansion of pumped hydro energy in Southeast Asia is anticipated to yield significant environmental and economic benefits. By providing a means to store excess renewable energy, pumped hydro can help reduce reliance on fossil fuels, thereby lowering greenhouse gas emissions. This aligns with global efforts to combat climate change and transition to a low-carbon economy.
Moreover, the development of pumped hydro facilities can create jobs and stimulate local economies. Construction and operation of these facilities require a skilled workforce, providing employment opportunities in both urban and rural areas. Additionally, the increased stability and reliability of the power grid can attract further investments in renewable energy projects, creating a positive feedback loop that supports sustainable economic growth.
Challenges and Considerations
Despite the promising outlook for pumped hydro energy in Southeast Asia, several challenges must be addressed to realize this potential. One key challenge is the need for comprehensive planning and coordination among various stakeholders, including governments, private investors, and local communities. Effective collaboration is essential to ensure that projects are developed in a manner that minimizes environmental impacts and addresses the needs of local populations.
Furthermore, securing financing for large-scale pumped hydro projects can be complex, particularly in regions where investment in infrastructure has historically been limited. Policymakers will need to create attractive investment conditions and provide clear regulatory frameworks to encourage private sector participation in the development of pumped hydro facilities.
The Future of Pumped Hydro in Southeast Asia
As Southeast Asia moves towards its goal of 18 GW of pumped hydro capacity by 2033, the region stands at a critical juncture in its energy transition journey. The integration of pumped hydro energy into the power grid is expected to play a pivotal role in enhancing energy security, supporting renewable energy deployment, and contributing to sustainable economic development.
In conclusion, the commitment to expanding pumped hydro capacity in Southeast Asia reflects a broader trend towards embracing innovative energy solutions that address the challenges of climate change and energy sustainability. With the right investments, policies, and stakeholder engagement, the region has the potential to become a leader in renewable energy storage and management, paving the way for a cleaner and more resilient energy future.
As the deadline of 2033 approaches, the continued focus on pumped hydro energy will be crucial for Southeast Asia to meet its energy needs while also fulfilling its environmental commitments. The successful implementation of these projects will not only benefit the region but also serve as a model for other parts of the world seeking to enhance their renewable energy capabilities.