The capital costs of pumped hydro storage (PHS) tend to be relatively high when compared to other energy storage solutions, but they offer advantages in scale and duration.
Pumped Hydro Storage Capital Costs:
- According to the U.S. National Renewable Energy Laboratory (NREL), capital costs for pumped storage hydropower projects vary but are modeled around $1,800 to $2,650 per kW of capacity depending on the project specifics and year of estimate (2020-2023 data).
- A detailed 2020 cost breakdown from Pacific Northwest National Laboratory indicated total installed costs around $3,070/kW for a 500 MW, 10-hour duration PHS facility. This includes direct costs such as reservoirs and powerhouses along with indirect costs like project management and owners’ costs.
- On an energy basis, some reports put the costs around $165/kWh for PHS, which is low relative to many other technologies when considering long duration storage. Another source noted a figure of $2250/kW for a 0.5 GW, 12-hour PHS facility.
Comparison with Other Energy Storage Technologies:
- When considering $/kWh, pumped hydro and compressed air energy storage (CAES) often provide the lowest costs for long-duration storage, at approximately $165/kWh and $105/kWh respectively, reflecting their suitability for large-scale, multi-hour storage needs.
- Other common storage technologies such as lithium-ion batteries typically have higher capital costs per kW and per kWh, especially for longer durations, but offer advantages in modularity, response time, and siting flexibility not available to PHS.
- The large upfront capital investment of PHS is balanced by lower operational costs and very long lifespans, making it economically competitive where geographic conditions allow.
Summary Table of Capital Costs (Approximate):
| Technology | Capital Cost per kW | Capital Cost per kWh (for ~10-12 hr duration) |
|---|---|---|
| Pumped Hydro Storage | $1,800 – $3,070 | ~$165 |
| Compressed Air Energy Storage | – | ~$105 |
| Lithium-ion Batteries | Typically higher, varies widely | Higher than PHS for long duration |
Conclusion:
Pumped hydro storage has higher upfront capital costs per kilowatt compared to some other technologies but ranks among the lowest in cost per kWh of stored energy for long-duration applications. Its economics improve with scale and duration, making it an attractive option for bulk energy storage despite high initial investment requirements.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-the-capital-costs-of-pumped-hydro-storage-compare-to-those-of-other-energy-storage-solutions/
