Goldendale Energy awarded license for pumped storage hydropower facility

GOLDENDALE, WASH. - Americans are accustomed to having all the electricity we want, when we want it. As more of our electricity comes from wind and solar, managing the grid has become more challenging. Wind and solar generate electricity during limited conditions, which may not align with demand.

One solution to maintaining consistency is using battery storage for renewable energy. However, storing using traditional battery technology requires substantial infrastructure and maintenance. In addition, traditional batteries have environmental impacts associated with the extraction of raw materials used in construction, pose disposal issues due to hazardous components, and have a relatively short average lifespan of only 7 to 10 years.

Pumped storage hydropower may offer a better solution to store wind and solar electricity to align with demand. These systems create a "water battery" by using surplus electricity to pump water from a lower reservoir to an upper reservoir, essentially charging the battery. When electricity is needed, operators release water from the upper reservoir to pass through turbines, generating electricity (discharging the battery).

The use of pump storage hydropower is relatively uncommon in the United States, with only 25 operating closed-system projects, according to the Center for Land Use Interpretation. The first US-built pumped storage project, the Rocky River Pumped Storage Project, was completed in New Milford, Connecticut, in 1929 and continues to operate today. Currently, the only operating pump storage project in Washington state is the John W. Keys III Pump-Generating Plant at Grand Coulee Dam. It was completed in 1951, pumping water out of Lake Roosevelt up 280 feet and into Banks Lake. Originally, the plant was only a pumping facility to provide irrigation water. Beginning in the 1970s, the original pumps were replaced with reversible pump-generating units, turning the facility into a pump storage facility with a generating capacity of 314 megawatts.

On January 22, 2026, the Federal Energy Regulatory Commission (FERC) awarded a 40-year license to the Goldendale Energy Storage Project, Goldendale, Wash. The $2 billion closed-system pump-storage project will move water between two 60-acre reservoirs at different elevations. The project, which is also located within the Tuolumne Wind Farm, could use existing roads and transmission lines. The entire project area is located within Klickitat County's Energy Overlay Zone-a designation intended to streamline energy development.

Construction would begin in 2027, with the project operational in 2032. Once completed, the project could generate 1,200 megawatts (enough to power 500,000 homes) for up to 12 hours. The lower reservoir will be built on the site of the Columbia Gorge aluminum smelter near Goldendale, Washington. The smelter operated from 1971 to 2003 and is a hazardous waste cleanup site. The Goldendale Energy Storage Project developers, Rye Development and Copenhagen Infrastructure Partners, have pledged $10 million for the cleanup of the smelter site in conjunction with the project construction.

The Pacific Northwest electrical demand is projected to increase by more than 30% over the next decade, according to the Pacific Northwest Utilities Conference Committee. New projects like the Goldendale Energy Storage Project are likely to help balance demand from wind and solar generation, thereby improving grid reliability and stability.