Professional Documents
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Deane 2015
Deane 2015
Pumping mode
Lower reservoir
Turbine mode
Power flow
Pump /turbine
Water flow Water pipes
Figure 1. Simplified schematic of PHES system. Source: Reproduced with permission from the “stoRE project”. © Energy Economics
Group, Vienna University of Technology.
• Turbine and pump are separate units, which can be 3 ROLE IN POWER SYSTEMS
connected to the generator/motor alternately; this system
is more complex, but has a higher efficiency, because the Similar to the conventional hydropower, PHES can provide
units can be fluidically optimized separately. important services to electric power systems. With its rapid
• Turbine and pump are a single reversible unit, which response load-following and balancing capabilities, peaking
is directly connected to the generator/motor; this layout capacity, and power quality attributes, PHES can play an
significantly reduces the construction cost (up to 30%) important role in ensuring reliable electricity service. In an
but has around 2% lower efficiency. integrated power system, PHES can reduce the frequency of
start-ups of thermal power plants, help maintain a balance
In case turbine and pump are separate units, they can be between supply and demand under changing supply or
directly connected with each other through a pressure water demand patterns, and thereby reduce the load-following
pipe (hydraulic shortcut) to allow a faster switching between burden of thermal plants. Its flexible generation can provide
pumping and turbining mode. Furthermore, this also enables both up- and downregulation in the power system while its
Handbook of Clean Energy Systems, Online © 2015 John Wiley & Sons, Ltd.
This article is © 2015 John Wiley & Sons, Ltd.
This article was published in the Handbook of Clean Energy Systems in 2015 by John Wiley & Sons, Ltd.
DOI: 10.1002/9781118991978.hces137
Pumped Hydro Energy Storage 3
Handbook of Clean Energy Systems, Online © 2015 John Wiley & Sons, Ltd.
This article is © 2015 John Wiley & Sons, Ltd.
This article was published in the Handbook of Clean Energy Systems in 2015 by John Wiley & Sons, Ltd.
DOI: 10.1002/9781118991978.hces137
4 Mechanical Storage
(Donalek et al., 2009). They can also be used to mitigate allow baseload power plants to operate at high efficiencies
the frequency of industrial load shedding caused by system in periods of low demand. PHES also provided for power
disturbances. systems management tasks such as balancing, frequency
stability, and black starts. PHES plants have been built in
many countries such as the United States (see Figure 7 for
4 DEVELOPMENT OF PUMPED HYDRO locations) and Japan (see Figure 8 for locations) to act as fast
ENERGY STORAGE response peaking plant, to complement high inertia nuclear
power plants. More recently, there has been a renewed
PHES is a resource-driven facility that requires very specific interest in the technology as an integrator for variable wind
site conditions to make a project viable, that is, high head power. Figure 9 shows that the development of PHES plants
(i.e., vertical distance between water surface and outlet in the United States was strongly correlated to the devel-
point), favorable topography, good geotechnical conditions, opment of nuclear power plants. PHES development on a
access to the electricity transmission networks, and water European level is also closely correlated to nuclear devel-
availability. The most essential of these criteria is avail- opment; however, countries such as Austria with no nuclear
ability of locations with a difference in elevation and access generation but a rich hydro resource developed PHES to
to water. Some of the earliest PHES plants were built in primarily enhance the operation and efficiency of large-scale
the Alpine regions of Switzerland and Austria, which have hydropower plants.
a rich hydro resource and a natural complimentary topog- The chronological development of PHES in many coun-
raphy for PHES (see Figure 6 for select locations of plants tries shows that the majority of plants were build from the
in Europe). Before the emergence of liberalized electricity 1960s to the late 1980s. This was in part due to a rush
markets, PHES plants were built by state-owned utilities as for energy security and nuclear energy after the oil crises
a system tool to supply energy in times of high demand and in the early 1970s. Fewer facilities were developed during
the 1990s due to a natural saturation of the best available
(most cost effective) locations and a decline in growth in
nuclear development. Figure 10 shows the development of
PHES in Europe confirming the high level of construction
in the 1960s through to the 1980s. Since the year 2000,
Figure 6. Selection of existing PHES within the Europe. Figure 7. Existing PHES in the United States.
Handbook of Clean Energy Systems, Online © 2015 John Wiley & Sons, Ltd.
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DOI: 10.1002/9781118991978.hces137
Pumped Hydro Energy Storage 5
1,20,000 25,000
1,00,000
20,000
Nuclear capacity (MW)
80,000
15,000
60,000
10,000
40,000
5000
20,000
0 0
9
3
75
77
79
81
83
85
87
89
91
93
95
97
99
01
6
20
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
Figure 9. Development of Nuclear Power and Pumped Hydro Energy Storage in United States.
Handbook of Clean Energy Systems, Online © 2015 John Wiley & Sons, Ltd.
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DOI: 10.1002/9781118991978.hces137
6 Mechanical Storage
Figure 10. Chronological development of PHES in MW capacity and plant number in the EU for existing and proposed PHES. Source:
Reproduced with permission from the “stoRE project”. © Energy Economics Group, Vienna University of Technology.
Handbook of Clean Energy Systems, Online © 2015 John Wiley & Sons, Ltd.
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DOI: 10.1002/9781118991978.hces137
Pumped Hydro Energy Storage 7
in 1981 and focused on corrosion preventive measures upper/lower reservoir and the pump/turbine (also hybrid
(Fujihara, Imano, and Oshima, 1998). Sea-water PHES may solutions are possible, where the upper reservoir is on the
have several advantages over conventional PHES such as surface). Further on up to three additional mine shafts have
lower civil construction cost and greater site availability. to be constructed for the operation of the plant, which also
Sea-water PHES technology has yet to develop a commer- contribute to a higher installation cost compared to “con-
cial track record, however, with only one completed plant ventional” PHES systems. The main advantage of a PHES
worldwide. Sea-water plants have been proposed in the in deep mining structures is that the plants are nearly invis-
United States, Indonesia, and Ireland. ible and allow an additional development potential for PHES
An interesting concept is PHES in open cast mining struc- (Erlei et al., 2011).
tures. Here, quarries with large volumes are planned to be More novel and exotic forms of pumped storage have also
used for the construction of a PHES after the coal produc-
been proposed.5 The Energy Island (Figure 13) incorporates
tion is finished. Depending on the area, coal layer quarries
a new concept in pumped hydro storage—an inverse offshore
with depths between 120 and 300 m remain (Figure 11). On
pump accumulation station (IOPAC) located on an artificially
one side of the mine is natural ground, on the other side is the
created island.
geological unstable mining waste. The side with the natural
ground can be used for the installation of a dam for the upper A large island shaped like a horseshoe with a vast, deep
reservoir, while the ground of the coal mine can be used as the reservoir located in the center would be located offshore.
lower reservoir (Figure 12). The main advantage of this setup When the wind is strongest, typically at night, water will be
is the existence of the lower reservoir and also the higher pumped out of the reservoir through turbines and into the sea.
environmental acceptability because the installation could When energy demand is high, the water will be let back into
also be part of the rehabilitation process of the coal mine1 . the reservoir through the same turbines.
Similar to open cast mining structures, deep mining struc- The IOPAC is unique from conventional pumped hydro
tures could also be used for the installation of a PHES storage systems in that it would be stationed on an artificial
system. In this innovative concept, discontinued deep mining island off the Dutch coast in the North Sea and comprised a
structures are expanded with additional caverns for the ring of dikes surrounding a 50-m-deep reservoir. The island
Pre-cut
Earth surface
Coal layer
Figure 11. Cross section of an open mining structure. Source: Reproduced from Do-Thanh and Schulz, 2010. © Do-Thanh and Schulz.
Upper
Dam reservoir
Earth surface
Graded and
aggregated Lower reservoir
mining waste
Waste pipes
Ground of coal mine Pump/turbine
Figure 12. Cross section of a PHES system installed in an open cast mining system. Source: Reproduced from Do-Thanh and Schulz,
2010. © Do-Thanh and Schulz.
Handbook of Clean Energy Systems, Online © 2015 John Wiley & Sons, Ltd.
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DOI: 10.1002/9781118991978.hces137
8 Mechanical Storage
3000
... 1000 MW
2500
... 500 MW Fridão/Alvito (PRT)
Baixo Sabor (PRT)
Investment cost (€/kW)
2000
Alto Támega complex (PRT)
Figure 14. Comparison of the specific investment cost for selected PHES systems.
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DOI: 10.1002/9781118991978.hces137
Pumped Hydro Energy Storage 9
significant volatility (not necessarily high energy prices) A number of new PHES plants are planned here, with devel-
must be present in the wholesale price of electricity to opers citing security of supply, increased wind penetration
make revenue. Increased wind generation in many countries in European countries, and an increase in demand in peak
can naturally lend itself to increased price volatility in the power in liberalized European markets as major incentives
wholesale market. for development.
Current trends for new PHES plants show that devel- Axpo Group is developing the Linthal 2015 PHES project
opers operating in liberalized markets are tending to repower, that consists of two major expansion phases to the existing
enhance projects, or build “pump-back” PHES rather than Linth Limmer complex. The first phase NESTIL is a 140-MW
traditional “pure pumped storage.” This is partly driven by pumping capacity and 110-MW turbine capacity plant that
a lack of economically attractive new sites. An advantage is being built into the existing complex. The second phase
with “pump-back” facilities is that energy storage is gener- Linthal is part of the same complex of reservoirs and has a
ally much greater, thus allowing plants to store large amounts 1000-MW pump/turbine capacity. Construction of Linthal is
of cheap electricity. Plants with significant inflow may also expected to take 5 years and has an estimated cost of 1 billion
operate as conventional hydroelectric generation units during Swiss francs.
times of excess inflow, thus increasing the economic compet- Construction started in 2008 at the 600-MW Nant de
itiveness of the plant. Drance PHES plant. The project is being developed by Nant
Repowering or enhancement of existing projects is also de Drance SA, a consortium of three companies Alpiq, CFF,
attractive as large savings are made on the capital expen- and FMV. The facility will use existing reservoirs at the Vieux
diture of the project using existing infrastructure, usually Emosson site. The project is expected to be completed in
reservoirs, thus also reducing environmental and planning 2015 and the cost of the project is estimated at 990 million
issues. Repowered plants benefit from improvements in tech- Swiss francs.
nology and design and usually use more efficient and larger Kraftwerke Oberhasli AG power company (KWO) is
turbines/pumps. From an investor standpoint, the internal currently in the process of its 845 million Swiss franc invest-
rate of return for repower projects is on average higher than ment and enhancement program (KWO Plus) of its existing
that of new plants. hydroelectric facilities. This program includes the construc-
tion of the new 400-MW PHES Gimsel 3 plant at a cost of
6.1 Regional developments 320 million Swiss francs. The plant will use existing reser-
voirs at the complex and complement the existing 344-MW
Within the EU there is currently approximately 7400 MW of Grimsel 2 PHES plant. Construction started on this facility
new PHES development proposed, with a total investment in 2010.
cost of over €6 billion (Deane, Gallachóir, and McKeogh,
2010). This constitutes approximately a 20% increase in 6.3 Portugal and Spain
installed capacity of PHES in the EU. Figure 15 shows
existing and planned PHES in the EU as well as current In the European Union, Portugal is leading a resurgence
installed wind capacity and the percentage of PHES of total in PHES with plans to build or upgrade up to 10 facili-
system capacity. ties adding approximately 2000 MW of PHES to its current
A review of new developments is given in the following capacity of 980 MW. Portugal has a total installed gener-
sections. Information on these developments was gathered ating capacity of 14,916 MW with a total hydroelectric
from publically available information from project devel- installation of 4943 MW. Hydroelectric capacity factors for
opers. the past 5 years have been below average at 56% and
Portugal is exposed to volatility in hydroelectric production.
6.2 Switzerland This volatility along with ambitious government renewable
energy targets and a relatively underexploited hydro resource
In a European comparison, Switzerland is fourth in terms of is stimulating a renewed commercial interest in PHES devel-
contribution of hydropower toward electricity production, opment. Portugal is one of the few European countries
behind Norway, Austria, and Iceland. Hydropower plays with significant hydro potential to be developed. Portugal
a major role in Switzerland’s energy production with a has ambitious renewable energy goals. In this context, the
share of around 57%. In Switzerland’s hydropower plant Portuguese government commissioned a techno-economic
statistics, a distinction is made between four types of plants: and environmental study entitled Plano Nacional de Barra-
run-of-river (3667 MW), storage (8067 MW), pumped gens de Elevado Potencial Hidroelélictrico—“The National
storage (1384 MW), and basic water flow plants (316 MW). Program of High Hydroelectric Potential Dams” (PNBEPH)
Handbook of Clean Energy Systems, Online © 2015 John Wiley & Sons, Ltd.
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DOI: 10.1002/9781118991978.hces137
10 Mechanical Storage
6000 80%
5500
70%
5000
4000
50%
3500
3000 40%
2500
30%
2000
1500 20%
1000
10%
500
0 0%
BE BG CZ DE IE EL ES FR IT LT LU AT PL PT SI SK SE UK HR CH
Existing PHES Planned PHES Installed wind capacity PHES as percentage of
existing capacity
Figure 15. Installed PHES, proposed PHES, existing installed wind capacity and percentage of PHES of full installed capacity in the EU
in 2011. Note for illustration purposed Germany (DE) and Spain (ES) installed wind capacity is limited to 6000 MW.
in 2007. The PNBEPH identified and defined priorities and Fridão/Alvito and expanding Alqeueva II. EDP state that
for investments in large hydroelectric developments in the increased wind penetration is adding to the value of PHES
project horizon 2007–2020. The PNBEPH intends to reach a through energy storage and ancillary services and making it
national hydro rated capacity above 7000 MW in 2020 (70% attractive for investment.
of the national hydro potential). Particular emphasis was
given in the PNBEPH to hydroelectric plants with pumping
capacity given its ability to facilitate the integration of vari- 6.4 Austria
able renewable generation. Wind power production and elec-
tricity demand in Portugal are highly uncorrelated with the Hydroelectric power supplies approximately 55% of the
windiest periods occurring at night time and early morning. Austrian electricity with an installed capacity of 11,853 MW
Preliminary analysis within the PNBEPH indicated that the of which 3.5 GW is PHES. Austria has 13 major PHES plants
ideal relationship between pumping capacity and wind power with the earliest plant Rodundwerk I (198 MW) coming into
was in the order of 1.0 MW of pumping capacity to 3.5 MW full operation in 1952. The majority of PHES in Austria
of wind power. is situated in the west and south of the country in the
One of the largest new PHES plants to be built in Portugal Alpine regions. PHES in Austria (as in the alpine regions of
(and Europe) is the Alto Támega complex. This project is Switzerland) is characterized by large storage reservoirs
being built by the Spanish utility Iberdrola. This complex with some glacial inflow and are generally connected by
consists of four dams (Daivoes, Gouaves, Padroselos, and long underground penstocks into multistage hydroelectric
Alto Támega) with a total generating capacity of 1200 MW complexes such as the Malta or Kaprun complexes. Major
and a total pumping capacity of 900 MW. Iberdrola is also owners of PHES in Austria are the utilities Verbund, Illw-
developing and expanding a similar complex in Spain at erke, and Tiroler.
the La Muela complex, which when completed will have a Liberalization of electricity markets, the rapid develop-
total generating capacity of 1710 and 1260 MW of pumping ment of wind energy, and increased electricity demand
capacity. EDP (Energias de Portugal) are building four new are cited as the main drivers for increased PHES devel-
PHES plants in Portugal, namely, Baixo Sabor, Foz Tua, opment in Austria. In November 2008, the Vorarlberger
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DOI: 10.1002/9781118991978.hces137
Pumped Hydro Energy Storage 11
Illwerke AG KOPS II (kopswerk) plant went into opera- ever-increasing share of intermittent renewable generation, a
tion. KOPS II is located at the site of the existing KOPS variety of energy players are considering new projects, which
plant. The project uses existing reservoirs and has a head of could increase the available capacity by up to 60% until the
approximately 800 m. The project cost approximately €360 end of the decade (Steffen, 2011). Overall, the prospects for
million and took 3.5 years to build. Plant KOPS II has a full new PHES have improved, even though profitability remains
range of controllability of ±100% in turbine operation and a major challenge.
in pump mode using hydraulic short circuit. This means that
the storage pumps and turbines are separate and can therefore 6.6 United States
work simultaneously. When there is excess power from the
electricity grid but this is not sufficient to drive the pumps, In the past 15 years, just one major PHES plant (Rocky
the turbines can be used at the same time so that the power Mountain 848 MW) was built in the United States. The most
can still be stored. Following the commissioning of KOPS recent PHES build in the United States is the 40-MW Lake
II, Vorarlberger Illwerke has 1700 MW of turbine output and Hodges project in San Diego. Recent renewed commer-
980 MW of pump capacity in the Austrian market. cial interest in PHES is evident with companies such as
Verbund is planning to build two new PHES Brookfield Power Corporation, Nevada Hydro Company, and
plants—Reißeck II and Limberg II. Verbund currently Symbiotic LLC announcing pipelines of over 6000 MW of
owns and operates six PHES plants with a total pumping planned PHES plants. According to official statistics from
capacity of 1182 MW and generating capacity of 1621 MW. the Energy Information Administration, there are currently
Limberg II (480-MW capacity with a head of 360 m) is no planned construction of PHES plants in the United
being built into the Kaprun Power Storage Complex and States; however, the Federal Energy Regulator Commission
is expected to cost approximately €365 million. After the (FERC) has issued a number of pre-permits6 totaling over
start of operations of Limberg II, the turbine output of the 43,000 MW of PHES. The majority of pre-permits were
Kaprun Power Storage Complex will increase from 353 issued for potential locations in western US states with
to 833 MW. The power input in the pump operation is set high renewable portfolio standard targets, namely California,
to climb from 130 to 610 MW. Reißeck II with a planned Washington, Nevada, and Oregon (Figure 16).
installed capacity of 430 MW and a head of 595 m is being A high number of pre-permit applications do not mean
added to the Malta complex in Carinthia. The project will that projects will get built. Fifteen years ago, the FERC had
use existing reservoirs and resources and is estimated to license applications for 18 GW of new pumped storage (42
cost €335 million. The project is currently going through plants with 31 in the west). However, deregulation, relatively
the environmental planning stage and is expected to be cheap natural gas, and risk adverse private investors led
completed in 2014. nearly all developers to back out of construction. Because
of the need for significant elevation changes in pumped
hydroelectric plant designs, the number of environmentally
6.5 Germany acceptable sites for future pumped hydroelectric facilities is
very limited.
Germany with 23 operational PHES plants has the highest
number of plants in Europe. In 2003, after 30 years of plan- 6.7 Japan
ning and 7 years of construction, Germany’s largest pumped
storage plant Goldisthal in Thuringia was put into operation. Although steady development of hydroelectric power plants
The plant, owned by Vattenfall, has an installed capacity of is desired, Japan has used nearly all available sites for
1060 MW and a storage capacity of 8.5 GWh. Currently, one the construction of large-scale hydroelectric facilities, and
new PHES facility is planned for Germany. Schluchseewerk so recent developments have been on a smaller scale. In
AG, owner of over 1600 MW of PHES in Germany, is in Japan’s largest service area, the Tokyo Electric Power
the planning phase of the 1000-MW Hornbergen II project. Company (TEPCO) service area, the proportion of PHES as
This is an extension to the Hotzenwaldgruppe complex in a percentage of the total capacity of the entire power network
southern Germany. The project is expected to be completed is determined based on a power network system analysis
by 2014 and is estimated to cost €700 million. Increase in that aims to minimize the power generation cost of the entire
wind energy installations, increase in energy demand in the power network taking into consideration the pattern of daily
region, and electrical grid congestion from the north to the electricity usage. The current optimal proportion of PHES
south of Germany are cited as prime reasons for develop- capacity as a percentage of the total capacity of the entire
ment of the plant. The development of pumped hydro storage power network in TEPCO’s service area is estimated to be
plants in Germany is regaining momentum. Motivated by an 10–15%.
Handbook of Clean Energy Systems, Online © 2015 John Wiley & Sons, Ltd.
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DOI: 10.1002/9781118991978.hces137
12 Mechanical Storage
ME
MT NO
OR MN MI
VT NH
SD WV MY MA
MI
WY CT RI
IA PA
NE
NV OH
IN MD OE
OT IL OC Open-loop
CA WV capacity in MW
CO
KS MO VA 0–400
KY
401–650
NC 651–900
TN
OK 901–1150
AZ
NM AR SC
1151–1400
MS AL CA
TX LA >1400
Proposed Proposed
State State Closed-loop
capacity (MW) capacity (MW) capacity in MW
AZ 3201 OH 1500 0–400
CA 9103 OK 4190 401–650
CO 500 OR 2400 651–900
HI 300 PA 250 901–1150
IL 250 SD 800
KY 1000 TN 3992 1151–1400
MT 400 UT 3100
>1400
NJ 1000 WA 5100
NV 2650 WV 350
Note: Preliminary determination of
NM 2254 WY 1200
open· vs. closed-loop classifivation based
Total capacity 43,540 MW on preliminary permit application.
Figure 16. Issues preliminary permits for pumped storage. Source: Reproduced with permission from http://www.ferc.gov/industries/
hydropower/gen-info/licensing.asp. With thanks to Federal Energy Regulatory Commission.
All PHES plants in Japan are owned and operated by the quantify the value of pumped storage in diverse systems
10 privately owned regional electric power companies and and these studies are well summarized in an EU JRC (Joint
J-Power that owns 4.9 GW of PHES. A number of PHES Research Centre) scientific and policy report on the assessing
plants are currently in the construction phase: TEPCO is storage value in electricity markets (Zucker, Hinchliffe, and
currently in the construction phase of the Kannagawa plant, Spisto, 2013). The following section is based on information
which when completed in 2015 will be Japan’s largest PHES and text from this report.
plant with an installed capacity of 2820 MW. TEPCO also Table 2 shows the main characteristics of pumped hydro
has the option to bring another 800 MW online at its Kazuno- engineering studies in terms of market, years, and services
gawa II plant to increase its capacity to 1600 MW. Kazuno- from the report. The studies are based on historic market
gawa PHES is unique in that it has one of the world’s largest data (from Europe, the United States, and Australia) except
ultra high head large capacity turbines (400-MW pump with for Loisel et al. 2010 (2010) and PNNL (2012), which use
a head of over 700 m). market model-generated prices. Revenue sources considered
are energy market arbitrage, reserve markets, and capacity
payments (where these exist).
7 VALUE OF PHES Figure 17 shows the review of profitability figures from
the JRC report (Zucker, Hinchliffe, and Spisto, 2013) where
The value of pumped storage in a system is highly dependent the bars in the diagram represent the ranges of annual gross
on the makeup of the system in terms of thermal generation margins found within each study. Gross margin is calculated
portfolio, renewables penetration and type, market structure, as the difference between storage profits and variable plus
and interconnection. A number of studies have aimed to fixed O&M costs per kilowatt of installed (turbine) capacity.
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DOI: 10.1002/9781118991978.hces137
Pumped Hydro Energy Storage 13
Table 2. Pumped hydro energy storage market studies by Zucker, Hinchliffe, and Spisto (2013).
Market Region Year Arbitrage Reserve Capacity Author and Year
BE 2007 Yes Yes — He et al. (2011)
DE 2002–2010 Yes — — Steffen (2011)
DE, FR 2010–2030 Yes Yes — Loisel et al. (2010)
ES, IT 2008–2011 Yes — — Rangoni (2012)
PJM 2002–2008 Yes — Yes Sioshansi, Denholm, and Jenkin (2011)
WECC 2020 Yes — — PNNL (2012)
AUS 2007 Yes — — Hessami (2011)
160
140
120
100
Gross margin (€/kW)
80
60
40
20
0
DE DE FR ES IT PJM WECC AUS BE DE
(2012) Loisel et al. Loisel et al. Rangoni Rangoni Sioshansi, PNNL (2012) Hessami He et al. (2012)
(2010) (2010) (2012) (2012)) Denholm, (2011) (2011)
and Jenkin
(2011)
Figure 17. Gross margin (€\kW) for pumped storage for a number of study regions. Information on chart is taken from Zucker, Hinchliffe,
and Spisto (2013).
If a specific study did not explicitly state annual storage Eurostat. Arbitrage only figures appear on the left-hand side
revenues, these are calculated from other data published. of Figure 17 while figures including revenues from reserve
For Loisel et al. (2010), annual gross margins were recal- and other markets on the right-hand side in the lightly
culated from the net present value, applying interest rate, shaded box.
economic lifetime, and inflation rates provided. In the case The ranges shown in Figure 17 are given by the following
of He et al. (2011), the figures obtained from the simulation variation of the input parameters:
of 1 week of storage dispatch optimization were extrapolated
in the report to an entire year by simply multiplying results • Historical energy prices taken from different years:
for 52 weeks. All currency units are normalized to €2012, Sioshansi, Denholm, and Jenkin (2011); Ekman and
applying exchange rates and inflation figures according to Jensen (2010); Steffen (2011); and Rangoni (2012).
Handbook of Clean Energy Systems, Online © 2015 John Wiley & Sons, Ltd.
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DOI: 10.1002/9781118991978.hces137
14 Mechanical Storage
• Effect of capacity payments: Sioshansi, Denholm, and Finally, publications on hybrid systems of PHS and wind
Jenkin (2011). on non-interconnected islands were not included in the JRC
• Prices generated by a market model making different review.
assumptions on the storage penetration level: PNNL
(2012) and Loisel et al. (2010).
Handbook of Clean Energy Systems, Online © 2015 John Wiley & Sons, Ltd.
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DOI: 10.1002/9781118991978.hces137
Pumped Hydro Energy Storage 15
At a European level, the STORE-Project.eu1 has made systems operation. There has been a renewed commercial
a number of recommendations to assist the deployment of and technical interest in pumped hydroelectric storage
PHES and storage projects. The project recommends that if recently with the advent of increased variable renewable
a need for energy storage is identified, then this need should energy generation and the development of liberalized elec-
be clearly expressed in energy policy and clearly discernible tricity markets. However, barriers exist to further deployment
objectives should be developed at EU and Member State of the technology. The primary barriers can be summarized
level. It recommends that physically viable sites be iden- as follows: profitability of new systems is challenging,
tified and tested (subject to environmental assessment) at in particular, in the context of regulatory uncertainty in
a strategic level during the development of PHES plans energy markets and high capital costs of new projects make
and programs. It recommends that clear MS guidelines for investment unattractive for investors. Projects also face
sustainable project development, best practice guidelines, environmental challenges for siting and the availability of
and guidelines for planning are established to further the economically, environmentally, and technically suitable
sustainable development of bulk energy storage. Finally, it sites is an issue. Another significant challenge facing
recommends that the efficiency and speed with which bulk pumped storage project developers is the regulatory timeline
EST projects are considered during the planning approval for development of new projects with long and complex
stage be improved with the establishment of appropriate permitting process in some regions.
mechanisms.
The issue of modeling restrictions may also be seen as a ACKNOWLEDGMENT
barrier to deployment of further storage systems (Grünewald
et al., 2012). Although modeling capabilities are increasing Parts of this article have been reprinted and updated from
in sophistication, additional variables have increased Renewable and Sustainable Energy Reviews, Volume 14,
the complexity of modeling a power system. Typical Issue 4, J.P. Deane, B.P. Ó Gallachóir, E.J. McKeogh,
modeling capabilities available on the power system may “Techno-economic review of existing and new pumped
not adequately account for all of the capabilities of energy hydro energy storage plant”, pp. 1293–1302, May 2010,
storage and can undervalue their use, especially considering with permission from Elsevier.
resources providing multiple services (Deane, Drayton, and
O’Gallachóir, 2014; Grünewald et al., 2012). This inability
to accurately and completely measure the full benefits of RELATED ARTICLES
energy storage resources represents a significant challenge
to deployment as utilities, developers and regulators are then Introduction: Renewable Energy
unable to fairly compare resources. A good example of this
is production cost modeling. Most production cost models
operate at the hourly resolution, looking only over a 1-year
horizon, and thus do not account for generation and load ENDNOTES
variability at shorter time frames, which can present a signif-
icant limitation in evaluating the full range of capabilities 1. Information from http://www.store-project.eu/.
of newer technologies. Many energy storage technologies 2. Federal Energy Regulatory Commission. Online
are well suited to provide services at fine timescales due to at http://www.ferc.gov/industries/hydropower/gen-
their quick ramping capabilities (Grünewald et al., 2012). info/regulation/pump.asp.
At longer timeframes, capacity expansion models may 3. Information taken from www.alstrom.com.
have difficulty in capturing the benefits of PHES due to 4. TEPCO Official Press Release available
the inherent need to simplify the temporal resolution of online at: http://www.tepco.co.jp/en/press/corp-
the problem over such a long planning time frame. This com/release/betu05_e/images/051222e1.pdf.
leads to difficulty in the consideration of energy storage 5. Information taken from www.dnvkema.com.
resources as alternatives to new generation and transmission 6. A preliminary permit, issued for up to 3 years, does
investment. not authorize construction; rather, it maintains priority
of application for license (i.e., guaranteed first-to-file
status) while the permittee studies the site and prepares
9 CONCLUSION to apply for a license. The permittee must submit peri-
odic reports on the status of its studies. It is not neces-
Pumped hydroelectric storage is a flexible form of electricity sary to obtain a permit in order to apply for or receive
generation and can contribute many benefits to power a license.
Handbook of Clean Energy Systems, Online © 2015 John Wiley & Sons, Ltd.
This article is © 2015 John Wiley & Sons, Ltd.
This article was published in the Handbook of Clean Energy Systems in 2015 by John Wiley & Sons, Ltd.
DOI: 10.1002/9781118991978.hces137
16 Mechanical Storage
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FURTHER READING
Grünewald, P.H., Cockerill, T.T., Contestabile, M., and Pearson,
P.J. (2012) The socio-technical transition of distributed electricity
Heier, S. (2014) Grid Integration of Wind Energy, 3rd edn, Wiley.
storage into future networks—system value and stakeholder views.
ISBN 978-1-119-96294-6.
Energy Policy, 50, 449–457.
Handbook of Clean Energy Systems, Online © 2015 John Wiley & Sons, Ltd.
This article is © 2015 John Wiley & Sons, Ltd.
This article was published in the Handbook of Clean Energy Systems in 2015 by John Wiley & Sons, Ltd.
DOI: 10.1002/9781118991978.hces137