Following the publication of the EU Electrification Action Plan and the Tripartite Agreement on Energy Storage, International Hydropower Association (IHA) CEO Eddie Rich has written to European Commission President Ursula von der Leyen and Energy Commissioner Dan Jørgensen, urging the Commission to adopt a longer-term policy framework for pumped storage and long-duration energy storage.

The European Commission recognised the strategic value of pumped storage but an overfocus on delivery of energy storage by 2030 risks prioritising the quick over the best solutions.

Dear President von der Leyen and Commissioner Jørgensen,

I am writing on behalf of the members of the IHA European Taskforce in response to the recent EU Electrification Action Plan and Tripartite Agreement on Energy Storage, both of which we broadly very much welcome. Across multiple meetings with industry stakeholders, the European Commission has shown a clear understanding of pumped storage’s contribution to energy sovereignty, security of supply, system resilience and long-term affordability. Pumped storage is also one of the few large-scale energy infrastructure technologies able to strengthen European industrial capabilities, local supply chains, skilled employment and long-term regional economic development.

However, there is a growing inconsistency between this recognition and the current policy focus on 2030 delivery horizons. Given the time required to develop and construct projects, setting 2030 targets as the primary benchmark effectively excludes pumped storage. As a consequence, storage needs that would be best served by pumped storage in countries with favourable geography and existing infrastructure are increasingly being filled by Battery Energy Storage Systems (BESS). This creates a risk that Europe optimises for rapid deployment rather than long-term system value. This will have significant impacts on the total energy system costs as well as the reliance on complex international supply chains.

In several markets, uncertainty regarding future price spreads and revenue cannibalisation is already incentivising operators to maximise short-term returns from BESS assets, potentially accelerating degradation and reducing useful life. This raises a fundamental question: once revenues decline and replacement cycles arrive, will large-scale battery repowering remain economically viable without further public support? If not, Europe risks creating a recurring dependency on subsidised replacement cycles while reinforcing reliance on non- European supply chains.

A useful source of inspiration is Portugal’s recently published National Energy Storage Strategy. The Portuguese approach explicitly includes both a 2030 and a 2040 horizon. While it foresees a significant expansion of batteries, it also proposes approximately 50% growth in pumped storage capacity, recognising that short-duration and long-duration storage fulfil different system needs. This provides a clearer pathway and reduces the risk of pumped storage losing its natural role within the future electricity system. We believe a similar perspective should be adopted at European level through a dedicated policy framework for long-duration storage. Such a framework should ensure that assets with longer development timelines but higher long-term system value are not disadvantaged by instruments designed primarily around near-term deployment. This approach should include a vision extending at least to 2035, accompanied by faster permitting and mechanisms capable of bringing new pumped storage into operation before that date.

Finally, it is important to remember the global strategic context. China, currently the leading global manufacturer of battery storage systems, commissioned around 7,500 MW of new pumped storage capacity in 2025 alone. This demonstrates that even the world’s most active battery market continues to invest heavily in pumped storage as a cornerstone of energy security and system resilience.