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Economic viability of pumped-storage power plants participating in the secondary regulation service

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  • Chazarra, Manuel
  • Pérez-Díaz, Juan I.
  • García-González, Javier
  • Praus, Roland

Abstract

This paper analyses the economic viability of twelve pumped-storage hydropower plants equipped with different fixed-speed and variable-speed units and with and without considering hydraulic short-circuit operation. The analysed plants are assumed to participate in the day-ahead energy market and in the secondary regulation service of the Iberian power system. A deterministic day-ahead energy and reserve scheduling model is used to estimate the maximum theoretical income of the plants assuming perfect information of the next day prices, the residual demand curves of the secondary regulation reserve market and the percentages of the real-time use of the committed reserves. An estimate of the minimum theoretical pay-back period is obtained from the maximum theoretical income as a result of the scheduling model. Results indicate that the economic viability with and without variable speed units and operating or not in hydraulic short-circuit mode is not discarded if the plants also participate in the secondary regulation service, and that the minimum theoretical pay-back periods can be reduced significantly when the plant is equipped with variable speed units and/or operates in hydraulic short-circuit mode. In addition, the maximum theoretical income obtained with the used optimization model and the proposed pumped-storage hydropower plants are significantly higher than the real income obtained by plants that are currently operating in the Iberian system.

Suggested Citation

  • Chazarra, Manuel & Pérez-Díaz, Juan I. & García-González, Javier & Praus, Roland, 2018. "Economic viability of pumped-storage power plants participating in the secondary regulation service," Applied Energy, Elsevier, vol. 216(C), pages 224-233.
    • Handle: RePEc:eee:appene:v:216:y:2018:i:c:p:224-233
    DOI: 10.1016/j.apenergy.2018.02.025
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    6. Li, Yanxue & Gao, Weijun & Ruan, Yingjun & Ushifusa, Yoshiaki, 2018. "The performance investigation of increasing share of photovoltaic generation in the public grid with pump hydro storage dispatch system, a case study in Japan," Energy, Elsevier, vol. 164(C), pages 811-821.
    7. Nasir, Jehanzeb & Javed, Adeel & Ali, Majid & Ullah, Kafait & Kazmi, Syed Ali Abbas, 2022. "Capacity optimization of pumped storage hydropower and its impact on an integrated conventional hydropower plant operation," Applied Energy, Elsevier, vol. 323(C).
    8. Jarosław Kulpa & Michał Kopacz & Kinga Stecuła & Piotr Olczak, 2024. "Pumped Storage Hydropower as a Part of Energy Storage Systems in Poland—Młoty Case Study," Energies, MDPI, vol. 17(8), pages 1-23, April.
    9. Lan, Xinyao & Jin, Jiahui & Xu, Beibei & Chen, Diyi & Egusquiza, Mònica & Kim, Jin-Hyuk & Egusquiza, Eduard & Jafar, Nejadali & Xu, Lin & Kuang, Yuan, 2022. "Physical model test and parametric optimization of a hydroelectric generating system with a coaxial shaft surge tank," Renewable Energy, Elsevier, vol. 200(C), pages 880-899.
    10. Martínez-Lucas, Guillermo & Pérez-Díaz, Juan I. & Chazarra, Manuel & Sarasúa, José I. & Cavazzini, Giovanna & Pavesi, Giorgio & Ardizzon, Guido, 2019. "Risk of penstock fatigue in pumped-storage power plants operating with variable speed in pumping mode," Renewable Energy, Elsevier, vol. 133(C), pages 636-646.
    11. Ding, Jie & Xu, Yujie & Chen, Haisheng & Sun, Wenwen & Hu, Shan & Sun, Shuang, 2019. "Value and economic estimation model for grid-scale energy storage in monopoly power markets," Applied Energy, Elsevier, vol. 240(C), pages 986-1002.
    12. Juan I. Pérez‐Díaz & Marcos Lafoz & Frank Burke, 2020. "Integration of fast acting energy storage systems in existing pumped‐storage power plants to enhance the system's frequency control," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 9(2), March.
    13. Mensah, Johnson Herlich Roslee & Santos, Ivan Felipe Silva dos & Raimundo, Danielle Rodrigues & Costa de Oliveira Botan, Maria Cláudia & Barros, Regina Mambeli & Tiago Filho, Geraldo Lucio, 2022. "Energy and economic study of using Pumped Hydropower Storage with renewable resources to recover the Furnas reservoir," Renewable Energy, Elsevier, vol. 199(C), pages 320-334.
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    15. Menéndez, Javier & Fernández-Oro, Jesús M. & Galdo, Mónica & Loredo, Jorge, 2019. "Pumped-storage hydropower plants with underground reservoir: Influence of air pressure on the efficiency of the Francis turbine and energy production," Renewable Energy, Elsevier, vol. 143(C), pages 1427-1438.

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