An enhanced pumped storage power system. More particularly, the invention is a regenerative power system that utilizes the gravitational forces of downward movement of large quantities of water to convert same to electrical energy. In the preferred mode of implementation, the system utilizes a man-made lake at a first level of elevation. Though higher altitudes can be effective, the lake need only be approximately twenty to thirty feet in elevation. The lake, which may exceed one hundred acres in size, may be elevated above and adjacent a natural body of water, such as seawater at a coastline. As such, sandy terrain associated with the region facilitates initial construction of the system. An underground generator is utilized for the power conversion and pumping of the water back to the upper reservoir during times of low energy demand, allowing for significant noise reduction. Importantly, the system of the present invention may be utilized to provide significant levels of power to serve relatively large geographic areas during times of peak energy demand, when other sources of power are more expensive and subject to power outages. Finally, it should be noted that the components of the system are aesthetically-pleasing in nature, allowing the system to be effectively utilized in a residential area.