Pumped‐storage hydropower plants can contribute to a better integration of intermittent renewable energy and to balance generation and demand in real time by providing rapid response generation. The utilisation of variable‐speed pump‐turbine units with a doubly fed induction machine is being progressively applied due to its overall efficiency and high level of operating flexibility. This study presents state‐of‐the‐art pumped energy storage system technology and its AC–DC interface topology, modelling, simulation and control analysis. It also provides information on the existing global capacities, technological development, topologies and control strategies of the pumped‐storage system. This report also outlines the analysis of dynamic performances of the system. It also attempts to recommend the future works in this area. This study concludes that pumped storage is the most suitable technology for small autonomous island grids and massive energy storage, where the energy efficiency of pumped storage varies in practice. Around the world, the size of the pumped‐storage plant mostly lies in the range of a small size to 3060 MW. The back‐to‐back voltage source converter topology is mostly conducted due to its significant features. Due to its imperative features, the vector control strategy is widely used. The pumped‐storage plant is dedicated to power management and stability regulation of grid and isolated power systems.