Path Forward

Paving the Path Forward: Strategic Actions for Hydropower Success

A strategic and coordinated approach is necessary to fully harness the potential of pumped storage hydropower (PSH) and address the challenges identified in previous sections. This section outlines recommendations for policymakers, industry stakeholders, and investors to advance PSH development and integration.

Policy Recommendations

State Procurement Policies: Incorporate long-duration storage targets into renewable portfolio standards and energy storage mandates, recognizing the unique benefits of PSH.

Market Mechanisms: Develop and implement market mechanisms that adequately compensate PSH for its full range of services, ensuring financial viability and attractiveness to investors.

Market and Regulatory Reforms

Standardized Valuation Methodologies: Adopt standardized methodologies for valuing energy storage technologies, considering total lifecycle costs and benefits.

Long-Term Market Signals: Implement long-term market signals that incentivize investment in grid reliability and resilience services, such as capacity payments and long-term power purchase agreements.

Some states have established zero-carbon energy targets. They are phasing out coal generation; however, to keep power flowing in the evening and overnight, they rely on natural gas power plants that operate in peaking mode. The short timeline to permit and install these facilities and the relatively lower cost have made this the "easy" short-term answer. However, there does not seem to be a plan for where the power will come from when the carbon associated with Natural Gas must be turned off

Strategic Action Plan:

  • Industry Collaboration: Foster collaboration among stakeholders, including developers, utilities, policymakers, and research institutions, to address common challenges and share best practices.
  • Synergies to Work Collaboratively with Other Energy Storage Technologies: PSH can work great in tandem with batteries. Batteries can supply faster response but are expensive for long durations. Combining the technologies gets the best from each system: small battery/capacitor systems for fast reactions and PSH for the longer duration requirements.
  • Public Engagement and Education: Launch campaigns to raise awareness about the benefits of PSH, address environmental concerns, and build public support.
  • Research and Development: Increase funding for R&D to drive innovation in PSH technologies and operational practices.
  • International Collaboration: Engage in international partnerships and knowledge-sharing initiatives to learn from global best practices and accelerate PSH adoption.
  • Financing and Investment Strategies: Develop new financing models, such as green bonds and public-private partnerships, to reduce the risk and increase the attractiveness of investing in PSH projects.

Recommendations for Specific Challenges

Address Construction and Environmental Concerns:

  • Proposal: Implement best practices for minimizing environmental impacts during construction and operation. This includes thorough environmental impact assessments, use of environmentally friendly construction methods, and ongoing monitoring of ecosystem health.
  • Impact: Reducing environmental impacts will help gain regulatory approvals and public support, facilitating smoother project development.

Enhance Workforce Training:

  • Proposal: Invest in training programs to develop a skilled workforce capable of designing, building, and operating PSH facilities. Partner with educational institutions and industry associations to create specialized curricula and certification programs.
  • Impact: A well-trained workforce will ensure the successful implementation and maintenance of PSH projects, supporting long-term operational excellence.

Optimize Supply Chains:

  • Proposal: Strengthen supply chains for critical materials and components used in PSH projects. Establish strategic partnerships with suppliers and invest in local manufacturing capabilities to reduce dependency on global supply chains.
  • Impact: Robust supply chains will reduce the risk of delays and cost overruns, ensuring timely project completion.

By implementing these strategic recommendations, the full potential of pumped storage hydropower can be realized. Policymakers, industry stakeholders, and investors must work together to create an enabling environment that supports the development and integration of PSH, ensuring a resilient and sustainable energy future.

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