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Pumped Hydro Energy Storage

Paul Deane and Brian Ó Gallachóir


University College Cork, Cork, Ireland

1 INTRODUCTION Currently, there are more than 90 GW of PHES systems (with


power rating >100 MW) installed worldwide, representing
Pumped hydroelectric storage is currently the only commer- approximately 3% of the global generation capacity. The
cially proven large-scale, economically viable (>100 MW) hydraulic, mechanical, and electrical efficiencies of pumped
energy storage technology. The fundamental principle of storage determine the overall cycle efficiency, ranging from
pumped hydro energy storage (PHES) is to store electric 65% to 85%. If the upstream pumping reservoir is also used
energy in the form of hydraulic potential energy. Water stored as a traditional reservoir, the inflow from the watershed
in an upper reservoir is processed in a turbine to recover may balance out the energy loss caused by pumping. If not,
its potential energy in the form of mechanical (kinetic) net losses lead to pumped hydropower being a net energy
energy. Pumping of water from a lower reservoir or elevation consumer.
to an upper reservoir typically takes place during off-peak Figure 1 shows a simplified schematic of a general PHES
periods, when demand for electricity and associated prices system but there are many different subtypes of PHES,
are low. Generation takes place during peak demand periods for example, sea-water PHES, which use the ocean as a
by allowing water to flow through the turbine, similar to a lower reservoir (one system existing today in Japan), or
conventional hydro plant and back to the lower elevation or underground PHES, which use deep mining structures for
reservoir. However, most PHES systems differ from conven- one or both reservoirs; however, these systems are still at
tional hydro power plants as the processed water does not just a conceptual stage and are not mainstream. Generally, two
drain away; it is captured and retained in a lower reservoir. main types of PHES are distinguished, namely pure PHES
In times of low electricity demand/low electricity prices, the and pump-back PHES. Pure PHES plants rely entirely on
water is raised again to the upper reservoir by pumping that water that has been pumped to an upper reservoir from
is powered by an electrical motor. a lower reservoir, a river or the sea. Pure PHES are also
known as closed-loop or off-stream. Pump-back PHES use a
combination of pumped water and natural inflow to produce
2 TECHNOLOGY OVERVIEW
power/energy similar to a conventional hydroelectric power
plant. Pump-back PHES may be located on rivers or valleys
Power ratings of PHES systems range from several MW up
with glacial or hydro inflow. Figures 2–5 show a selection
to 2 GW with discharge times up to 100 h depending on the
of both pure and pump-back PHES.
storage volume of the reservoirs. Pumping and generating
Generally, the power house for a PHES system can be
in PHES systems generally follow a daily cycle but weekly
constructed in an underground cavern or in an open shaft near
or even seasonal cycling is also possible with larger PHES
the lower reservoir. For the cavern configuration, the power
plants.
house is located deep inside the mountain with vehicular and
PHES systems are among the oldest and most widely used
personnel access through a tunnel. The penstock and tailrace
energy storage options and therefore fully commercialized.
pipes are both tunneled. In a shaft configuration, the power
Handbook of Clean Energy Systems, Online © 2015 John Wiley & Sons, Ltd. house is constructed in an open excavation close to the lower
This article is © 2015 John Wiley & Sons, Ltd. reservoir. This is normally only possible where the active
This article was published in the Handbook of Clean Energy Systems
in 2015 by John Wiley & Sons, Ltd. range of the water in the lower reservoir is only a few meters.
DOI: 10.1002/9781118991978.hces137 The tailrace forms an integral part of the power house. For the
2 Mechanical Storage

Upper reservoir Motor /generator


Electr.
~ grid
~

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.

Figure 3. Closed-loop or pure PHES. Turlough Hill, Ireland.


Source: Picture sourced from energystorageexchange.org (Sandia
Figure 2. An off-stream PHES. Seneca PHES, USA. Source: National Laboratories and Strategen Consulting, LLC). Reproduced
Picture sourced from energystorageexchange.org (Sandia National with permission. © Sandia Corporation.
Laboratories and Strategen Consulting, LLC). Reproduced with
permission. © Sandia Corporation.
the pump to be “controllable”: turbine and pump units run
simultaneously so that the energy demand of the pump can be
shaft configuration, the penstock pipe can be an overground varied with the turbine, that is, the pump is partly powered by
pipe, a buried pipe, or a tunnel1 . the turbine of the plant and partly by the connected electricity
PHES may also be classified according to their machine system. An example for such a PHES system is the Austrian
setup. Two main technical setups exist (also a combination “Kopswerk 2” of the Vorarlberger Illwerke AG1 .
of both in one PHES plant is possible):

• 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

and Sioshansi, 2009). A summary review of the opera-


tional characteristic of PHES in comparison to conventional
power plant is provided in Table 1. In terms of operational
characteristics and flexibility, it is clear that gas turbine
peaking plants such as open cycle gas turbines (OCGTs)
offer some similar power system operation services.
In addition, storage and pumped storage hydropower can
help reduce the challenges of integrating variable renewable
resources such as wind, solar photovoltaics, and wave power.
By storing electrical energy when renewable output is high
and the demand low, and generating when renewable output
is low and the demand high, the curtailment of renewable
energy can be reduced, and the base load units on the system
will operate more efficiently.
However, the use and benefit of pumped storage
hydropower in the power system will depend on the overall
mix of existing generating plants and the structure of the
transmission system.
When considering PHES to assist the integration of vari-
able renewable generation, they should be viewed as a system
asset to balance all forms of variability in the power system,
Figure 4. Pump-back PHES. La Muela, Spain. Source: Picture including customer demand, as opposed to dedicating a
sourced from energystorageexchange.org (Sandia National Labo- PHES unit to a single variable source such as wind. Owing
ratories and Strategen Consulting, LLC). Reproduced with permis-
to the cost of the PHES, it is generally not cost effective to
sion. © Sandia Corporation.
provide dedicated balancing capacity for variable generation
in large power systems where the variability of all loads and
generators is effectively reduced by aggregation.
In terms of flexibility, PHES must ultimately compete with
other forms of flexibility such as increased interconnection
to other electrical power systems, more efficient operation
of current power system, and greater use of demand side
measures and demand response. The most appropriate choice
is likely to be system specific and the economics will likely
be affected by market structure and available incentives.
At the same time, PHES has attributes that have not, to
this point, been fully valued in all electricity markets, for
example, the reduced cycling of thermal plant (although
contract or ownership structures could also deal with this),
allowing greater operational efficiency of baseload plant and
the potential to offset transmission investment (Sioshansi,
Figure 5. Siah Bishe Pumped Storage Power Plant in Iran. Source: Denholm, and Jenkin, 2012). As these additional benefits are
Picture sourced from energystorageexchange.org (Sandia National valued and if PHES capital costs decline, the role of PHES
Laboratories and Strategen Consulting, LLC). Reproduced with
in balancing supply and demand and assisting in variable
permission. © Sandia Corporation.
renewable energy may increase.
quick start capabilities make it suitable for black starts and The benefits of storage are most significant in systems
provision of spinning and standing reserve. The avoidance with low generation flexibility and large wind penetration. It
of the use of transmission and generation resources during has been demonstrated (Donalek et al., 2009) that properly
peak-load hours may contribute to transmission investment designed pumped storage facilities could assist in integrating
deferral. This may be achieved by installing storage units intermittent wind energy resources into the regional dispatch.
such as PHES near loads that reduce losses and increase effi- Pumped storage units with the newest technology, such as
ciency, lower the need for bulk transfers and peak outtakes, adjustable speed and ternary units, can supply load following
and finally reduce the use of transmission lines (Denholm and become the fastest response stations in the power system

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

Table 1. Typical operating characteristic of generating plant.


Nuclear Power Plant Coal Fired Plant Oil Fired Plant Gas Turbine-Peaker PHES
Normal duty cycle Baseload Baseload Baseload–midmerit Peak load Peak–midmerit
Unit start up-daily No No Yes, hot Yes Yes
Load following No Yes Yes Yes Yes
Quick start (10 min) No No No Yes Yes
Frequency regulation No Yes Yes No Yes
Black start No No No Yes Yes

(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.
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 5

capacities of PHES. The United States has an installed


capacity of 21,886 MW2 of PHES plants accounting for
approximately 2.1% of total installed generating capacity.
Thirty-nine PHES plants are currently in operation with
installed capacities ranging from 8 to over 2000 MW. The
largest plant is the Virginia Electric & Power Co. (now called
Dominion) owned Bath plant with a capacity of 2862 MW
built in 1985. The 1050-MW Helms pumped storage project,
operated by Pacific Gas and Electric Company in Fresno
County, California, with a head of 543 m has the highest
head in the United States. The largest federally owned
pumped storage project is the Tennessee Valley Authority’s
1530-MW Raccoon Mountain project on the Tennessee
River in Tennessee. Major pumped storage plants (plants
with installed capacity >100 MW) in the United States are
characterized by a mixture of pure pumped storage (17
plants), operating on daily cycles and pump-back facilities
(12 plants) with large energy storage capacity operating on
weekly or seasonal cycles. A number of pump-back facilities,
Figure 8. Existing PHES in Japan.
such as Castaic (1275 MW), also serve as part of irrigation
and water regulation schemes. The average size of a PHES
however, a number of large PHES plants have come online plant in the United States is 520 MW. The majority of PHES
in Europe, such as Goldisthal in Germany with a capacity plants were built in the period 1970–1980 when 14 facilities
of 1060 MW and Kopswerk II in Austria with a capacity of totaling a capacity of 9636 MW were installed.
450 MW. Like the United States, Japan developed PHES to comple-
PHES generally accounts for a small percentage of a ment nuclear power facilities, providing peak power in the
country’s generation portfolio in terms of installed capacity. evenings and pumping when demand is low. Japan has
The country with the highest percentage of installed PHES the third largest installation of nuclear power worldwide
worldwide is Luxemburg with 67%. On the worldwide with a total of 53 units accounting for 47.9-GW installed
scale, the United States and Japan have the highest installed capacity. Currently, Japan has 34 major PHES plants with

1,20,000 25,000

1,00,000
20,000
Nuclear capacity (MW)

PHES 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

Installed nuclear Cumulative nuclear Installed PHES Cumulative PHES

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.
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
6 Mechanical Storage

Development of PHES plants in Europe


15,000 25
14,000
13,000 Capacity of new PHES plants

Number of newly installed plants


12,000 20
Newly installed capacity (MW)

Number of new PHES plants


11,000
10,000
9000 15
8000
7000
6000 10
5000
4000
3000 5
2000
1000
0 0
<1940 1940–1950 1950–1960 1960–1970 1970–1980 1980–1990 1990–2000 2000–2009 2009–2018
Period of installation

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.

a total capacity of 24,575 MW. Current installed capaci- 5 TECHNOLOGY DEVELOPMENTS


ties in Japan range from 200 to 1932 MW. The majority of
plants are pure pumped hydro storage schemes operating While PHES is a relatively mature and established tech-
on a daily cycle characterized by large megawatt capacity nology, a number of recent innovations and improvements
and relatively short storage times, typically 5–10 h. PHES have been observed.
installations account for 10.2% of full installed generating A number of proposed PHES plants will use variable speed
capacity. pump/turbine units. This technology is already employed
In a European context, the majority of PHES facilities are in a number of existing PHES units in Japan. The advan-
concentrated in the Alpine regions of France, Switzerland, tage of variable speed pump/turbine units is that they use
and Austria; however, Germany has the largest number of asynchronous motor generators that allow the pump/turbine
PHES plants with 23 operational plants ranging in capacity rotation speed to be adjusted. This technology allows regu-
from 62.5 to 1060 MW. Germany is second only to Spain lation of the amount of energy absorbed in pumping mode.
This facilitates energy storage when power levels available
in terms of installed megawatt capacity. Over 6000 MW of
on the network are low and in addition to reducing the
PHES is installed on the Iberian Peninsula. Spain has 14
number of starts and stops can help regulate the network
PHES plants with sizes ranging from 65 to 745 MW. The
frequency or voltage in pumping mode3 . This technology
largest plant that is currently in operation is the Iberdrola-
also allows turbines to operate closer to their optimal effi-
owned Villarino plant with a capacity of 745 MW. Portugal
ciency point. This improved performance comes at extra
has five major PHES plants with an average capacity of costs for construction as the motor/generator/turbine shaft is
160 MW. PHES in Portugal and Spain are predominantly longer and requires deeper excavation.
pump-back type operating on major rivers or operating as In the area of improved efficiencies, the Kannagawa PHES
part of larger hydro complexes or cascades. This type of plant in Japan was the first plant to employ a “splitter runner”
facility can also play a number of important roles from that is a multiblade turbine pump runner. Improvements in
irrigation to flood control. The largest PHES plant in the power generation and pump efficiencies of up to 4% are
EU is the 1800-MW EDF-owned Grand Maison facility in reported for this runner by TEPCO4 .
the French Alps opened in 1987. The 1728-MW Dinorwig In the area of site development, J-POWER became the
plant in the United Kingdom was previously the largest first company in the world in 1999 to build and operate
PHES plant in Europe. Dinorwig can achieve full load from a 30-MW sea-water PHES plant at Okinawa with a head
spinning in less than 20 s. of 136 m. Research for the plant development started

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 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

120 m Sand layer (upper cut)


Graded up to
mining 300 m Sand layer (lower cut)
waste

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.
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
8 Mechanical Storage

reserve and increase the value of PHES in ancillary services.


Reducing the volatility or increasing the efficiency of current
hydroelectric assets is also a prime driver to developers who
already have existing hydroelectric or PHES assets.
PHES plants are characterized by long asset life (typically
50–100 years), high capital cost, low operation and main-
tenance cost, and round-trip efficiencies of 60–85%. There
are, however, limited siting possibilities for new PHES. The
large-scale deployment of PHES projects carries with it some
environmental impacts that should not be overlooked. PHES
in particular—even for new facilities and designs—has a
significant land and water footprint.
Project costs for PHES are very site-specific with some
Figure 13. Energy Island concept. Source: Reproduced with
permission from DNV GL-Energy. quoted costs varying from €600/kW to €3000/kW (Deane,
Gallachóir, and McKeogh, 2010). Furthermore, capital costs
depend not only on the installed power but also on the energy
itself would be built from materials dredged to deepen the storage at any given site.
interior reservoir5 . Figure 14 details the published capital costs and installed
capacities for a number of proposed PHES plants, the
majority of which are in Europe. A general linear trend is
6 DRIVERS FOR NEW PHES observed in the relationship between installed capacity and
DEVELOPMENT capital cost. Capital costs per megawatt for select proposed
PHES are between €470/kW and €2170/kW.
Drivers for new PHES development are region- or country- PHES projects may be remunerated in liberalized elec-
specific but generally renewable energy targets and tricity markets through ancillary service payments, capacity
increasing the efficiency of current hydro plant are often payment, and electricity trading. Generally, electricity
seen as drivers for new development. Targets for increasing trading is the major source of revenue for PHES as operators
renewable energy are stimulating wind energy and solar may take advantage of energy arbitrage opportunities. For
power developments in many countries. Increased vari- arbitrage, pumping price has to be at least 25–30% lower
able generation is seen to drive the demand for system than selling price to compensate for energy losses and

3000

... 1000 MW
2500
... 500 MW Fridão/Alvito (PRT)
Baixo Sabor (PRT)
Investment cost (€/kW)

2000
Alto Támega complex (PRT)

Nant de Drance (SUI)


1500

Goldisthal (GER) Kops II (ext.) (AUT) Limberg II (AUT)


1000
kWO plus (SUI)
Linthal 2015 (SUI)
Feldsee (AUT)

500 Linthal NESTIL (SUI)


Soske elektrame Nova Gorica
Hornbergen II (GER)
(SLO)
La Muela II (ext.) (ESP)
0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
Year of completion

Figure 14. Comparison of the specific investment cost for selected PHES systems.

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 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.
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
10 Mechanical Storage

6000 80%

5500
70%
5000

PHES as % of total installed capacity


4500 60%
Installed megawatt capacity

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

Handbook of Clean Energy Systems, Online © 2015 John Wiley & Sons, Ltd.
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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.
This article is © 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.

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 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.
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
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).

8 BARRIERS TO PHES DEPLOYMENT


The report highlights that as authors make different
assumptions on the investment CAPEX and on weighted PHES developments may face a number of barriers to
average costs of capital (WACC), the studies’ own judg- deployment. The primary barriers can be summarized
ments on profitability are usually not comparable. Therefore, as follows: Profitability of new systems are challenging
annuities for an investment in a generic PHS are shown particularly in the context of regulatory uncertainty in
as straight lines in Figure 17. Profitability is reached if energy markets. High capital costs of new projects and
gross revenue exceeds these lines. A total of four possible long development times make investment unattractive for
cases are shown by combining two different values for the investors. Projects also face environmental challenges for
WACC (6% and 10%) with two different levels of specific siting and the availability of economically, environmen-
CAPEX (€500–1500/kW) taken from the Technology tally, and technically suitable sites is an issue. Another
Map of the European Strategic Energy Technology Plan. significant challenge facing pumped storage project devel-
The different WACC levels represent typical values for a opers is the regulatory timeline for development of new
regulated and a deregulated business. An investment life projects with long and complex permitting process in some
time of 35 years is assumed for both cases. The possible regions.
storage gross margin of a PHS seen in all scenarios/studies In the United States, the main limiting factors for PHES
varies by about one order of magnitude (€10–110/kW/year). appear to be environmental concerns and financial uncertain-
Arbitrage only operation allows the repayment of a low ties rather than the availability of technically feasible sites
CAPEX (€500/kW) investment in some cases but does not (Yang and Jackson, 2011; Ela et al., 2013). PHES developers
provide sufficient revenues for a high CAPEX (€1500/kW) are proposing innovative ways of addressing the environ-
investment in any of the cases considered. Repayment of mental impacts, including the potential use of waste water
a high CAPEX/low WACC combination seems feasible in PHES applications. In some cases, a properly designed
if reserve markets (and other services) are included. In PHES system can even be used to improve water quality
none of the studies would gross revenues allow repay- through aeration and other processes. Such new opportu-
ment in a high WACC and high CAPEX scenario. Some nities and the increasing need for greater energy storage
results have to be seen in the context of specific study may lead policy makers to reassess the potential of PHES
assumptions. in the United States, particularly for coupling with inter-
mittent renewable energy sources such as wind and solar
• The upper end of the figures for Sioshansi, Denholm, and power. The National Hydropower Association’s Pumped
Jenkin (2011) includes capacity payments of $40/kW Storage Development Council indicated in 2012 that devel-
based on expectations for the PJM market. opment of new PHES in the United States, particularly in
• The rather low arbitrage spreads in PNNL (2012) have areas with increased wind and solar capacity, would signif-
been generated by a market model assuming a 45% icantly improve system reliability while reducing the need
reserve margin (taken from a DOE scenario for the year to construct new fossil-fueled generation. They suggested
2020). new regulatory policies, including presenting bulk energy
• The model of Hessami (2011) only optimizes the sale of storage as a new asset class, forming a streamlined licensing
wind power to the power market of Victoria/Australia; process for low impact PHES, and allowing regional trans-
the storage device does not buy power from the grid. mission organizations and independent system operators
Allowing full arbitrage would thus provide an additional to enter into long-term, fixed-price contracts with energy
upside. storage owners. Winters (2010) suggested the Federal Energy
• Rangoni (2012) calculates storage profitability for Italy Regulatory Commission allow pumped storage to qualify
on the basis of the average national power price (PUN, as transmission facilities for purposes of determining eligi-
prezzo unico nazionale), which results from the zonal bility for future incentives and possible creation of storage
prices weighted with exchanged volumes for each credits. Bhatnagar et al. (2013) provide a further overview
Italian price zone. Spreads may be higher within zones of market and policy barriers to energy storage in the United
providing a further upside potential. States.

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 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

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