The global capacity of battery systems surpassed 250 gigawatts (GW) at the end of 2025, exceeding the installed power of pumped hydro storage, which stood at approximately 202 GW, according to an analysis by Rystad Energy and data from the International Hydropower Association. This marks a significant shift in the landscape of energy storage, a sector once dominated by the established technology of water-based systems.
Just five years ago, in 2020, the dominance was absolute. Batteries then held a mere 17.6 GW of capacity compared to 159.5 GW in pumped hydro. That ratio has dramatically reversed, driven largely by the modular manufacturing and rapid deployment of battery technology. In 2023, battery capacity jumped to 89.2 GW, reaching 156.6 GW in 2024 and adding over 100 GW of new capacity in 2025.
This acceleration contrasts sharply with the development of pumped hydro storage, which requires extensive construction projects spanning decades and incremental annual increases in capacity. Whereas batteries benefit from scalable production, pumped hydro is constrained by geographical limitations, complex permitting processes, and substantial upfront investment.
The trend is also visible in the Czech Republic, though it faces unique challenges related to legislation, and permitting. Distribution system operators are reporting significant interest in connecting new battery capacities, though some of this demand may be speculative.
Although, interpreting these figures requires distinguishing between power (measured in gigawatts) and energy storage capacity (measured in gigawatt-hours). Batteries currently excel in delivering immediate power, but pumped hydro retains a substantial advantage in overall energy storage capacity.
The International Hydropower Association estimates the total energy storage capacity of pumped hydro globally at 9,000 GWh. In comparison, the combined capacity of all grid-scale batteries worldwide is estimated to be between 500 and 600 GWh. Which means that pumped hydro currently holds roughly fifteen to eighteen times more stored energy than all lithium-ion batteries combined.
BloombergNEF projects that battery storage capacity will reach parity with pumped hydro in terms of total stored energy around 2030. Currently, most large-scale battery storage installations are designed to deliver maximum power for two to four hours, while pumped hydro plants are typically designed for operation lasting several hours or even days. The Dlouhé Stráně pumped storage plant in the Czech Republic, for example, offers a duration of under six hours.
The economic viability of lithium-ion batteries has disrupted expectations for alternative technologies. Previously, it was anticipated that technologies like gravity-based energy storage (using raised weights), compressed air energy storage, and flow batteries would fill the gap for storage durations between four and twelve hours. However, the rapid decline in lithium-ion battery prices has made these alternatives less competitive.
Companies that invested in these alternative technologies have faced challenges. Redflow, an Australian company developing zinc-bromine batteries, recently collapsed. Energy Vault, initially focused on lifting and lowering concrete blocks for energy storage, has shifted its strategy to integrating conventional battery systems.
While batteries can technically store energy for extended periods, We see not economically practical. Batteries degrade with each charge-discharge cycle, and their lifespan in grid applications is typically ten to fifteen years. Storing energy for months is financially unviable given the cost of the technology and the potential for revenue generation through charging when electricity prices are low and discharging when prices are high.
This dynamic has led batteries to dominate the short-term, daily cycle market, while longer-duration storage remains the domain of established technologies like pumped hydro.
The rise of batteries does not necessarily signal the end of pumped hydro. Pumped hydro plants have a lifespan of eighty to one hundred years, making them highly efficient over their lifecycle. However, building new plants is a complex undertaking, requiring specific geographical features, lengthy permitting processes, and substantial investment.
China is the only country actively expanding its pumped hydro capacity, with 91 GW of new projects currently under construction. The rest of the world relies on facilities built in the latter half of the 20th century. While battery production scales rapidly, pumped hydro development remains sluggish and constrained.
