Access to the transmission grid is a significant factor in determining the costs of pumped hydro storage (PHS). Here are several reasons why:
- Distance and Costs: The cost of connecting a PSH facility to the grid is influenced by the distance between the powerhouse and the nearest high-voltage transmission line. Longer distances increase costs due to additional materials and construction needed for transmission lines.
- Grid Integration Complexity: The complexity of integrating PSH into the grid can add to costs. PSH facilities must be able to smoothly interact with the grid, which requires robust infrastructure and planning.
- Regulatory Framework: Accessing the transmission grid often involves navigating complex regulatory frameworks. Challenges include ensuring that PSH projects can be integrated into regional transmission planning without double recovery of costs or conflicting incentives for transmission and generation assets.
- Market Dynamics: PHS projects are often chosen for their energy storage capability rather than specifically for transmission support. However, when a project is considered for transmission purposes, it typically requires significant capacity, which can be costly and not always justified purely for transmission needs.
In summary, while access to the transmission grid is essential for the operation of PSH facilities, its specific impact on cost arises from distance-related construction costs, regulatory complexities, and market dynamics.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-significant-is-access-to-the-transmission-grid-in-determining-the-costs-of-pumped-hydro-storage/
