Full Title: The Role of Pumped Storage Hydro Resources in Electricity Markets and System Operation
Author(s): E. Ela, B. Kirby, A. Botterud, C. Milostan, I. Krad, and V. Koritarov
Publisher(s): National Renewable Energy Laboratory (NREL)
Publication Date: May 1, 2013
Full Text: Download Resource
Description (excerpt):
The most common form of utility-sized energy storage system is the pumped storage hydro system. Originally, these types of storage systems were built to assist with providing generation during peak times with the energy they stored while pumping during nighttimes, as well as a backup to nuclear power plants. Recent trends of differing electricity market design and increasing amounts of variable renewable generation have allowed for pumped storage hydro to provide other services to support the power system, and earn additional revenue. While the market design topics have been evolving since their inception, there are still ways that the designs can be improved to better value all of the capabilities that pumped storage hydro has to offer, while still maintaining a fair and impartial perspective. This paper will introduce some of the issues that may limit the ability to fully value pumped storage hydro plants in today’s markets and propose some solutions to those problems