An underground power station is a type of hydroelectric power station constructed by excavating the major components (e.g. machine hall, penstocks, and tailrace) from rock, rather than the more common surface-based construction methods.
One or more conditions impact whether a power station is constructed underground.
The terrain or geology around a dam is taken into consideration, as gorges or steep valleys may not accommodate a surface power station.
[1] After World War II, large hydroelectric power stations were placed underground more often in order to protect them from airstrikes.
[2] Often underground power stations form part of pumped storage hydroelectricity schemes, whose basic function is to level load: they use cheap or surplus off-peak power to pump water from a lower lake to an upper lake.