Analysis of the Policy and Market Framework for Hydro Pumped Storage in Latin America and the Caribbean

In the next decades, the evolution of the power sector in the region will be based on a combination of large-scale and centralized power plants, distributed generation, and even isolated microgrids. Storage technologies will be crucial to enable the management of the intrinsic variability of some renewable generation (wind and solar), particularly in scenarios where there is a need to reduce fossil fuels used for base generation. Pumped Storage Hydropower (PSH) technologies are an attractive alternative, given the regions hydropower potential, existing installed capacity, and technical knowledge. This paper explores the policy and market framework in LAC for this technology.