[1] http://pubs.acs.org/doi/abs/10.1021/es401820p
[2] http://journals.plos.org/plosone/article?id=10.1371/journal....
There is some research going into putting concrete spheres into the ocean and pumping water in and out of them. The principle is the same but it doesn't need hundreds of hectares of forest to be cleared.
That's why you see energy being exported to hydro-rich Norway on windy winter days. It allows water to be retained in Norway's storage lakes for later use.
[1] http://pubs.acs.org/doi/abs/10.1021/es401820p
[2] http://journals.plos.org/plosone/article?id=10.1371/journal....
There are also problems with N2O emissions on the reservoirs, specially near the agricultural regions. And this is all without even talking about reducing biodiversity and destroying spawning areas for the fish by filling those with mud. So yes, efficiency is not always friendly.