IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v18y2025i11p2815-d1666782.html
   My bibliography  Save this article

An Optimized Dynamic Benefit Evaluation Method for Pumped Storage Projects in the Context of the “Dual Carbon” Goal

Author

Listed:
  • Cong Feng

    (Hubei Key Laboratory of Construction and Management in Hydropower Engineering, China Three Gorges University, Yichang 443002, China
    Department of Civil Engineering, Henan Polytechnic Institute, Nanyang 473000, China
    College of Economics and Management, China Three Gorges University, Yichang 443002, China)

  • Qi Guo

    (Hubei Key Laboratory of Construction and Management in Hydropower Engineering, China Three Gorges University, Yichang 443002, China
    College of Hydraulic and Environment Engineering, China Three Gorges University, Yichang 443002, China)

  • Qian Liu

    (Hubei Key Laboratory of Construction and Management in Hydropower Engineering, China Three Gorges University, Yichang 443002, China)

  • Feihong Jian

    (Hubei Key Laboratory of Construction and Management in Hydropower Engineering, China Three Gorges University, Yichang 443002, China
    College of Hydraulic and Environment Engineering, China Three Gorges University, Yichang 443002, China)

Abstract

With the rapid development of a new power system under the “dual carbon” goal, pumped storage has gained increasing attention for its role in integrating renewable energy and enhancing power system flexibility and security. This study proposes a dynamic benefit evaluation method for pumped storage projects, addressing the limitations of static analyses in capturing the evolving benefit trends. In this paper, the multi-stage dynamic benefit evaluation model was constructed by introducing time-of-use tariffs, periodic capacity pricing mechanism, and ancillary service revenue prediction based on machine learning and the multiple regression method. Sensitivity analysis was applied to explore the impact of key parameter variations on economic indicators. The results show that the benefit structure differs significantly across stages, and with electricity market development, a diversified pattern supported by electricity, capacity, and ancillary service revenues will emerge. The application of the model to an actual operating pumped storage power station yielded an internal rate of return of 8.18%, a payback period of 16.4 years, and a 26% increase in net present value compared with traditional methods. The proposed model expands the theoretical framework for pumped storage benefit evaluation and provides strong support for investment decisions, policy design, and operational strategy optimization.

Suggested Citation

  • Cong Feng & Qi Guo & Qian Liu & Feihong Jian, 2025. "An Optimized Dynamic Benefit Evaluation Method for Pumped Storage Projects in the Context of the “Dual Carbon” Goal," Energies, MDPI, vol. 18(11), pages 1-27, May.
  • Handle: RePEc:gam:jeners:v:18:y:2025:i:11:p:2815-:d:1666782
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/18/11/2815/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/18/11/2815/
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:18:y:2025:i:11:p:2815-:d:1666782. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.