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It certainly works. Northfield mountain in Mass is an example of a water based version. Question is why? Northfield was because of nukes powering all night with less load. Without nukes I don’t see the purpose. As renewable stuff comes on line the solar at least gets made when people want it.
This would absolutely work to store energy. I read a non-technical article a few years ago on a related topic. The article talked about storing energy as inertia of high speed spinning disks in ultra-low friction environment. Put energy in, spin disk faster. Take energy out, draw energy off of spinning disk. The key is to minimize loss of energy