How a pumped hydro megaproject is being built in Washington
As lithium-ion batteries dominate headlines, the revival of pumped hydro in the United States signals a shift in how utilities approach long-duration storage. Rye Development’s Goldendale Energy Storage Project, recently licensed by the Federal Energy Regulatory Commission, marks the first fully approved US pumped hydro facility since 1995.
Located near the Columbia River Gorge in Washington, the project will feature two reservoirs separated by 2,000 vertical feet and store up to 1.2 gigawatts of electricity. It will outperform any battery installation currently in operation, delivering up to 12 hours of continuous discharge, a critical feature as intermittent renewable generation increases.
Why building a pumped storage project is a multi-year commitment
Unlike modular battery units, a pumped hydro system requires large-scale construction and site-specific engineering. Goldendale will involve the excavation of two 60-acre reservoirs, linked by pressurized tunnels, and the installation of turbines capable of shifting water between elevations to generate electricity.
Water from the Columbia River will initially fill the system, which will then operate by recirculating that volume between the upper and lower basins. The project is designed to generate electricity during peak hours and recharge when demand is low.
These civil works take time. Rye applied for its FERC license in June 2020 and received approval in early 2026, a timeline that reflects both the physical and regulatory complexity involved. Construction must now begin within 24 months, per license conditions.
What permits and environmental rules shape hydro construction
Projects of this scale face layers of environmental regulation. Since Goldendale connects to federal lands and draws water from a navigable waterway, it required full FERC licensing. That process includes environmental assessments, stakeholder engagement, and mitigation planning.
Although the system won’t alter the Columbia River directly, Rye must follow seasonal constraints to avoid disrupting salmon migration and invest in offsite land to offset potential impacts on golden eagle habitats. The license also requires restoration of native vegetation in affected areas.
To reduce land-use conflict, the reservoirs will be built on a former aluminum smelter site, and Rye plans to reuse nearby roads and grid connections overseen by the Bonneville Power Administration. This approach minimizes new disturbance and speeds up site preparation.
The infrastructure advantage and economic ripple effects
The Goldendale project will cost between $2 billion and $3 billion, with funding from Copenhagen Infrastructure Partners. That investment will stay mostly domestic, creating jobs across engineering, construction, and operations.
Unlike solar or wind farms that depend on site-specific conditions, pumped hydro construction creates lasting infrastructure. Rye’s reuse of an industrial site is a notable model: tapping into preexisting grid access, avoiding greenfield development, and using terrain shaped for elevation gain.
These benefits extend beyond energy delivery. Large-scale infrastructure like Goldendale brings long-term economic gains to rural regions and aligns clean energy development with community revitalization.
Rye is now negotiating with utilities in the Northwest and California, where storage mandates support the business case for long-duration assets. That requirement separates pumped hydro from battery installations, which are faster and easier to deploy. Modular systems can be installed within months and scaled flexibly. In contrast, pumped storage requires long lead times and substantial upfront investment.
Still, the long-term value is clear. Pumped hydro systems last decades, operate with minimal degradation, and provide grid-scale stability. Goldendale is licensed for 40 years, but its infrastructure is designed to operate for a century.
Sources:
Canary Media
Photo credit:
Goldendale Energy Storage Project