How do existing reservoirs influence the cost of new pumped hydro storage projects

How do existing reservoirs influence the cost of new pumped hydro storage projects

Existing reservoirs significantly reduce the costs of new pumped hydro storage (PHS) projects compared to constructing entirely new closed-loop systems. Here’s how:


Cost Advantages of Using Existing Reservoirs

  • Lower infrastructure expenses: Projects incorporating an existing reservoir eliminate the need for constructing one of the two required reservoirs, reducing dam-construction, land-acquisition, and environmental-mitigation costs.
  • Reduced environmental permitting: Retrofitting existing hydropower infrastructure minimizes land-use changes and environmental impacts, streamlining regulatory approvals compared to new dam projects.
  • Operational efficiency: Existing reservoirs often integrate with pre-built transmission lines and hydropower facilities, lowering grid-connection costs.

Comparison: Closed-Loop vs. Existing Reservoir PHS

Factor Closed-Loop (Two New Reservoirs) Existing Reservoir Projects
Capital Costs Higher due to full-scale construction Lower (existing infrastructure reduces costs)
Environmental Impact Higher (new land disturbance) Lower (minimized land-use changes)
Regulatory Timeline Longer (permitting complexity) Shorter (repurposing existing assets)

Case Example

The Big Creek hydropower system in California demonstrates the feasibility of retrofitting existing reservoirs for pumped storage, avoiding the $12.5–20 billion costs of new projects by leveraging existing dams and reservoirs. Similar retrofits in Europe and the U.S. show how this approach balances cost-efficiency with grid reliability.

Closed-loop PHS remains relevant for regions without suitable existing reservoirs but faces higher costs due to dual-reservoir construction.

Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-existing-reservoirs-influence-the-cost-of-new-pumped-hydro-storage-projects/

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