Supporting Case For Pumped Storage

Why Hydropower is the Backbone of Renewable Energy Integration

Pumped storage hydropower (PSH) has proven to be an essential technology worldwide, with significant successes in both continental and international markets. In China, the rapid development of PSH has added over 14 GW of capacity in the past decade, demonstrating the country's commitment to renewable energy integration. Similarly, Europe has seen steady growth in PSH, with countries like Germany, Austria, and Switzerland leading the way. These countries have leveraged PSH to balance their grids, which are heavily reliant on wind and solar power.

In North America, PSH projects such as the Bath County Pumped Storage Station in Virginia and the Ludington Pumped Storage Plant in Michigan have been operational for decades, providing valuable lessons in the operation and benefits of this technology. The success of these projects highlights the potential for PSH to support renewable energy integration and enhance grid stability.

Pumped storage hydropower has proven to be an ideal solution to the growing list of challenges faced by grid operators.

PSH offers several advantages over other energy storage technologies:

  • Lowest Greenhouse Gas Footprint: Closed-loop pumped storage hydropower systems rank as having the lowest potential to add to the problem of global warming for energy storage when accounting for the full impacts of materials and construction, according to an analysis conducted at the U.S. Department of Energy’s (DOE’s) National Renewable Energy Laboratory (NREL).
  • Most Cost-Effective Long-Duration Energy Storage (>8 hours): One of the lowest installed and life-cycle costs of commercially available energy storage technologies. For a 1000 MW, 10-hour duration project, PSH is a close second only to compressed air energy storage (CEAS) in terms of installed costs ($263/kWh) and levelized cost of storage (LCOS) ($0.11/kWh).
  • Provides Real Rotating Inertia for a Stable Grid: Rotating inertia refers to the energy stored in the heavy rotating generators. This stored energy is available for a few seconds. It can be accessed in the event of a plant failure elsewhere on the grid to help operators make the necessary overall grid adjustments to maintain grid frequency stability. The same inertia also helps operators to balance and operate the grid with constantly changing variable generating sources, such as wind and solar, which do not use conventional generators and, therefore, do not inherently provide inertia.
  • Efficiency and Storage Capacity Unaffected by Cycling or Depth of Discharge: Unlike typical batteries, the efficiency and energy storage performance of a pumped storage project are unaffected by operating conditions such as temperature, State of Charge (SOC), rest time, power rate, depth of discharge, and heat.

Mitigating Climate Change Impacts: PSH is critical in reducing greenhouse gas emissions and mitigating climate change. By providing a reliable storage solution for renewable energy, PSH enables more significant wind and solar power penetration into the grid, reducing reliance on fossil fuels. PSH has also been found to result in the lowest global warming potential compared to other available storage technologies.

  • Reduction of Fossil Fuel Dependence: As PSH supports the integration of renewables, it reduces the need for fossil fuel-based peaking power plants, often used to balance the grid. This leads to lower carbon emissions and a cleaner energy mix.
  • Supporting Carbon-Free Goals: Many states and countries have set ambitious targets for carbon reduction. PSH can help achieve these goals by providing a stable, long-duration storage solution that supports a high penetration of renewables.
  • Global Warming Potential: According to Simon et al. (2023), PSH has the lowest global warming potential of all available storage technologies.

Economic and Social Benefits: The development of PSH projects can bring significant economic and social benefits to local communities.

  • Job Creation: The construction and operation of PSH facilities create jobs in engineering, construction, and ongoing maintenance, contributing to local economies.
  • Energy Security: By providing a reliable and flexible energy storage solution, PSH enhances energy security, reducing vulnerability to fuel supply disruptions and price volatility.

PSH is not just an energy storage technology but a cornerstone of a resilient, reliable, and sustainable energy system. By integrating renewable energy sources, reducing greenhouse gas emissions, and providing essential grid services, PSH plays a vital role in the transition to a clean energy future.

IHA's Hydropower Pumped Storage Tracking Tool maps the locations and data for existing and planned pumped storage projects.

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