Hydraulic Rock Storage – an efficient system for large grid scale storage [pdf]
cleanenergybusinesscouncil.com
cleanenergybusinesscouncil.com
In practice, they'd probably have to line both the hole and the plug with something like tunnel lining segments.
With gravity working downward I suspect it is easier to find a stable column of rock than a stable horizontal bore, i.e. a column isn't going to collapse, the consistency can be very localized, and the person building the storage system gets to choose the location with more freedom than is typical for transportation infrastructure.
Obviously you've never played Dwarf Fortress.
http://www.authorstream.com/Presentation/heindl-958931-hydra...
(Edited to change info it was the same guy, added url)
Would make for an interesting front walk, that basically would turn into a staircase as the house went up :-)
Plumbing? You're on your own.
if the seal breaks, then most of the energy stored in the system might over an interval of only a few minutes go into kinetic and potential energy in the form of water flowing over terrain and water gushing high into the air, so at the least it seems like a bad idea to have a road containing through traffic as close to the facility as depicted in the final image in the OP (the PDF).
No, because, as shown on the fourth page, the length of the cylinder is ~r making the weight ~r^3 (if the length was constant, the weight would be ~r^2.)
If you wanted to make an unadorned column of water underground, you'd have to remove all the rock where the column is. Without knowing anything about that sort of construction, I'd guess the cost is proportional to the volume of the cylinder.
The proposed design requires removing a ring of rock plus a disk at the bottom. The article claims that the construction cost is therefore proportional to the cylinder's area.
There are also other reasons which are plausible, but they're not as interesting. Rock is denser, so you get more energy storage per unit volume. (Because: potential energy is given by E = m g h, where m is the mass raised. Adding a rock on top means you get greater mass)
At a minimum, it requires less land area.