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Assessment of the impact of electricity market prices on pumped hydro storage operation with renewable generation

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  • Naval, Natalia
  • Yusta, Jose M.

Abstract

The growth of renewable energy plants and storage systems challenges future energy management. This paper analyzes the impact of hourly electricity price variations in Spain from 2023 to 2050 on the operation of pumped hydro storage systems with renewable energy. A mixed-integer hourly mathematical model that maximizes the monthly operating profit of a pumped hydro storage plant with grid-connected wind and photovoltaic generation facilities over an entire year is formulated. Subsequently, a regression model is estimated to represent the price profile of the Spanish electricity market in 2023, considering hourly electricity price data and technical and economic variables that affect price formation. The model is applied to the different hourly electricity market price profiles obtained in the proposed scenarios up to 2050. Results show an increase of 75 % of the energy imported from the grid in 2050 compared to 2023, as a consequence of the continuous reduction of electricity market prices. In addition, the use of storage is increased by 12 % because the energy produced from renewable energy facilities is used to fill the storage and ensure energy available at times of insufficient renewable generation and higher electricity market prices to maximize the system's profit.

Suggested Citation

  • Naval, Natalia & Yusta, Jose M., 2025. "Assessment of the impact of electricity market prices on pumped hydro storage operation with renewable generation," Energy, Elsevier, vol. 336(C).
    • Handle: RePEc:eee:energy:v:336:y:2025:i:c:s036054422504068x
    DOI: 10.1016/j.energy.2025.138426
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