Pumped Storage Hydroelectric Power Plants: Issues and Applications

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1 Pumped Storage Hydroelectric Power Plants: Issues and Applications István TÁCZI www. erranet.org

2 Description of the work-plan issue There is a growing interest to build pumped storage hydroelectric power plants in order to use them for system regulation purposes. The high penetration of intermittent renewable generators requires more system flexibility. This technology could provide this flexibility to the electricity system. Several questions could occur before implementing this type of project, like: - Is the pumped storage facility a generation unit, which should compete with other generators on the ancillary service market?, or this technology should be classified as system regulation facility (owned, operated by TSO - consequently the cost of investment and operation should be covered by the system operation charge)? - Should the pumped storage facility pay network/system charge in both ways of operation (purchasing electricity for pumping/storing and generating/delivering electricity to grid), or "only" one way? 2

3 Role of hydropower Dispatchable Bulk power source Cost-effective High efficiency Operational flexibility Enhances system stability Long lifetime Geographical needs, environmental effects 3

4 Pumped Hydro Storage Large, mature and commercial utility scale storage technology Employs off-peak electricity to pump water to a higher reservoir Could be efficient in the peak shaving and balancing services backbone of a reliable power system with high penetration of intermittent renewables 4

5 Pumped Hydro Storage: Around the World With over 150 GW, pumped hydro storage power plants represent around 99% of the world s electrical energy storage capacity. Country Installed PHS Capacity (MW) Japan China United States of America Italy Spain Germany France India Austria South Korea IRENA projection for 2030: Hydropower will increase 60%, PHS capacity will increase 100% from the 2014 status. 5

6 Possible Applications Peak shaving Load balancing Frequency regulation Back-up reserve, spinning reserve Quick start capability Black start capability Voltage support 6

7 Technology overview η=50-80% up to 4 GW 7

8 Regulation of Hydropower Multi-purpose facilities strong interaction between water and energy management Most governments use public licensing processes in administrating Government is responsible for the arbitration among the conflicting needs 8

9 Pumped Hydro Storage Policy PHS plants are not considered as renewable energy sources in the European Energy Directive but it mentions the integration support Storage has not been the focus of any specific regulatory action yet (there are some initiatives) It is considered as any generation source in network codes in discharge mode (and load in charge mode) 9

10 Network fees PHS pays in most EU countries double fees (tariffs) for network access, some TSOs charge nothing for the PHS s role as electricity consumer, other TSOs recognize it as a renewable based generator regulation should focus on the advantages 10

11 Regulation of Pumped Hydro Storage 11

12 Recommendations for the future Uncertainities keeps investors off the PHS PHS could be effective in day-ahead and real time markets (also capacity markets) Some technologies should be paid for their performance (faster, flexible) Definition of storage, application-based regulation is needed 12

13 THANK YOU FOR YOUR ATTENTION! István TÁCZI W Web: