Pumped storage facilities rely on gravity to produce energy. The system moves water between a lower reservoir and an upper reservoir. When energy on the grid is plentiful, this excess energy is used to pump water from the lower reservoir to the upper reservoir. When energy is needed, water is released from the upper reservoir and used to turn hydroelectric turbines to generate on-demand electricity. The system is filled with water once, and then re-uses that water, continually repeating this process.

No. Pumped storage hydro facilities have been in use for more than a century, and are a well-established form of energy storage around the world. According to the 2023 US Hydropower Market Report, there are more than 40 pumped storage projects currently operating in the United States.

Pumped storage facilities are the most common form of energy storage in the US, representing the vast majority of all utility scale storage, according to the U.S. Department of Energy. Pumped storage is the world’s largest, most efficient utility-scale energy storage solution.

Energy demand in the Southwest is rapidly growing, driven in large part by data centers and AI technology. Pumped storage hydro is a reliable, cost-effective technology that stores and delivers large amounts of power when people need it most.

• Long-lasting, with facilities operational for 100+ years.
• Affordable, costing 20-30% less than installed lithium-ion batteries.
• Low maintenance and resistant to supply chain disruptions.
• Helps stabilize the energy grid, as it can quickly ramp up or down to meet changing energy demand.

Several factors are considered, including:

• Topography: Pumped storage facilities require a specific topography that includes two reservoirs at different elevations.
• Geography: The geological formations should be stable and suitable for the construction of reservoirs, tunnels, and other infrastructure.
• Water availability: A reliable source of water is necessary to fill and maintain the two reservoirs.
• Land availability: Constructing a pumped storage facility requires land compatible with other local uses.
• Transmission access: Projects located within proximity to transmission lines make them more feasible than alternatives.

Rye Development has worked with Navajo Nation leadership to explore new pumped storage hydro in the western region of the Navajo Nation.

Rye Development is leading a new generation of pumped storage hydropower in the U.S. and helping create a more reliable energy grid. Rye develops projects from inception to operations through site identification, permitting, offtake and construction.

Rye works in partnership with utilities, policymakers, community leaders, tribal nations, and others to develop pumped storage hydropower projects in an environmentally responsible way. Visit their website to learn more about Rye Development’s pumped storage projects across the United States.

In a closed-loop facility, water is recirculated between lower and upper reservoirs through a pipe. In comparison, open-loop pumped storage projects connect to a naturally-flowing water feature, such as a river, often causing aquatic and terrestrial impacts that closed-loop facilities avoid.

Pumped storage facilities are large infrastructure projects that create thousands of family-wage jobs during the construction phase. These projects take four to five years to design and build, employing plumbers and pipefitters, electricians, heavy machinery operators and more, while also offering apprenticeship opportunities. Dozens of long-term positions would be needed to operate the projects over the next 100+ years.

In total, these pumped storage facilities could generate millions of dollars in annual tax revenue for the Navajo Nation.

The project reached a key milestone in July 2025 with the issuance of a preliminary permit from the Federal Energy Regulatory Commission (FERC). That permit was possible only with the support of the Navajo Nation Department of Justice. Rye is focused on advancing the project, provided it has full support of local chapters and the broader Navajo Nation administration.