Pumped-storage hydroelectricity (PSH), or pumped hydroelectric energy storage (PHES), is a type of hydroelectric energy storage used by electric power systems for load balancing. The method stores energy in the form of gravitational potential energy of water, pumped from a lower elevation reservoir to a higher elevation. Low-cost surplus off-peak electric power is typically used to run the pumps. During periods of high electrical demand, the stored water is released through turbines to produce electric power. Although the losses of the pumping process make the plant a net consumer of energy overall, the system increases revenue by selling more electricity during periods of peak demand, when electricity prices are highest. If the upper lake collects significant rainfall or is fed by a river then the plant may be a net energy producer in the manner of a traditional hydroelectric plant.

Hydroelectricity, or hydroelectric power, is electricity generated from hydropower. Hydropower supplies one sixth of the world's electricity, almost 4,500 TWh in 2020, which is more than all other renewable sources combined and also more than nuclear power. Hydropower can provide large amounts of low-carbon electricity on demand, making it a key element for creating secure and clean electricity supply systems. A hydroelectric power station that has a dam and reservoir is a flexible source, since the amount of electricity produced can be increased or decreased in seconds or minutes in response to varying electricity demand. Once a hydroelectric complex is constructed, it produces no direct waste, and almost always emits considerably less greenhouse gas than fossil fuel-powered energy plants. However, when constructed in lowland rainforest areas, where part of the forest is inundated, substantial amounts of greenhouse gases may be emitted.