Pumped storage hydropower (PSH) operating costs are generally lower than most other grid-scale energy storage technologies, particularly when considering their multi-decade lifespans and high cycle stability. Here’s a comparative breakdown:
Key Cost Components
- PSH operating costs: Estimated at ~0.002 EUR/kWh (fractions of a cent per kWh) for well-maintained facilities. These include personnel, equipment maintenance, and wear-and-tear, but exclude energy procurement costs.
- Efficiency: Modern PSH achieves ~85% round-trip efficiency, meaning 15% energy loss during pumping/discharging cycles. This impacts effective operating costs when accounting for energy price arbitrage.
Comparison to Other Technologies
- Lithium-ion batteries: Operating costs range $15-50/MWh (~0.015-0.050 EUR/kWh), primarily from degradation management and auxiliary systems.
- Compressed air (CAES): $5-15/MWh (~0.005-0.015 EUR/kWh) for diabatic systems, though newer adiabatic designs may reduce this.
- Flow batteries: $20-50/MWh (~0.020-0.050 EUR/kWh) due to membrane replacement and pumping losses.
Critical Distinction
While PSH has minimal direct operating expenses, its profitability depends on electricity price differentials (e.g., pumping at 0.10 EUR/kWh requires selling at ≥0.118 EUR/kWh to break even). This contrasts with battery systems, where degradation dominates cost structures rather than energy procurement.
PSH’s durability (50+ year lifespan) offsets higher upfront capital costs ($165/kWh) compared to lithium-ion ($300-400/kWh), making it economically favorable for long-duration storage despite moderate efficiency penalties.
Specific CAES cost data not shown in sources but included for context.
Lithium-ion cost referenced from general industry knowledge, not source-provided data.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-the-operating-costs-of-pumped-hydro-storage-plants-compare-to-other-energy-storage-technologies/
