Return on investment for pumped hydro storage

What is pumped hydro storage (PHS)?

Pumped hydro storage (PHS) is the largest and most mature technology suitable to store energy. As non-predictable renewable energy penetration increases, PHS is expected to become more and more widespread. Pumped hydro plants are characterized by a round-trip efficiency ranging from 70 % to 80 % .

Can pumped hydro storage improve trading efficiency?

This study introduces a strategy to improve trading efficiency by optimizing pumped hydro storage (PHS) capacity. A dynamic pricing model, based on Stackelberg game theory, integrates marginal costs and power delivery patterns to optimize electricity pricing, reduce system fluctuations, and enhance operational efficiency.

What is pumped hydro storage?

Pumped hydro storage is the highest-capacity form of grid energy storage. In 2021, the total installed capacity of pumped-storage hydropower reached approximately 160 GW . By 2020, global capacity was about 8500 GWh, making up over 90 % of the world's total electricity storage.

How important is pumped hydro storage in power delivery?

Role of pumped hydro storage in power delivery Overall, PHS stations demonstrate significant value across all strategies. As observed in Fig. 7, during peak wind and PV generation periods, the PHS absorbs surplus electricity, thereby preventing curtailment.

What is pumped storage hydropower (PSH)?

Pumped Storage Hydropower (PSH) is the largest form of renewable energy storage, with nearly 200 GW installed capacity providing more than 90% of all long duration energy storage across the world with over 400 projects in operation. The guidance note delivers recommendations to reduce risks and enhance certainty in project development and delivery.

How does pumped storage hydropower work?

Pumped storage hydropower (PSH) works on a simple principle. At times of low demand (and low electricity prices), water is pumped from a lower reservoir to upper reservoir, and then released at times of high demand (and high prices) to drive a turbine and generate electricity.