SWOT-AHP Analysis of the Importance and Adoption of Pumped-Storage Hydropower

Energy storage technologies are becoming increasingly important when it comes to maintaining the balance between electricity generation and consumption, especially with the increasing share of variable renewable energy sources (VRES). Pumped storage hydropower plants (PSHs) are currently the largest form of energy storage at the grid level. The aim of this study is to investigate the importance and prospects of using PSHs as part of the energy transition to decarbonize energy sources. A comparison was made between PSHs and battery energy storage systems (BESSs) in terms of technical, economic, and ecological aspects. To identify the key factors influencing the wider adoption of PSHs, a combined approach using SWOT analysis (which assesses strengths, weaknesses, opportunities, and threats) and the Analytical Hierarchy Process (AHP) as a decision support tool was applied. Regulatory and market uncertainties (13.54%) and financial inequality (12.77%) rank first and belong to the “Threats” group, with energy storage capacity (10.11%) as the most important factor from the “Strengths” group and increased demand for energy storage (9.01%) as the most important factor from the “Opportunities” group. Forecasts up to 2050 show that the capacity of PSHs must be doubled to enable the integration of 80% of VRES into the grids. The study concludes that PSHs play a key role in the energy transition, especially for long-term energy storage and grid stabilization, while BESSs offer complementary benefits for short-term storage and fast frequency regulation. Recommendations to policymakers include the development of clear, accelerated project approval procedures, financial incentives, and support for hybrid PSH systems to accelerate the energy transition and meet decarbonization targets.