The thesis is part of Energy Storage in our Future Low Carbon Society Project, whose objective is to extend knowledge and gain information regarding energy storage methods, by creating demo environment in Technobothnia. The Vaasa region possesses a huge variety of companies operating in energy sector creating significant demand for research regarding energy field. The growth of renewable energy sources produces increasing demand for energy storage research. This research will focus on documenting information, planning and creating layout of pumped hydro energy storage (PHES) located in Technobothnia area. The theoretical part of research discusses the reasons of increased demand of energy storage systems generally and specifies the importance of pumped hydro energy storage systems among other available technologies. The thesis also includes the creation of simulation and piping and instrumentation diagram, to define the pumped hydro energy storage layout and functionality. The research main conclusions were the evaluation of the small-scale PHES systems by utilizing simulation to assess feasibility and functionality of the system, and the signification of head height increase to the efficiency.