The economic benefits of using pumped hydro storage (PHS) for renewable energy integration are considerable and multifaceted:
Economic Impact and Job Creation
- Pumped storage hydro currently supports significant economic activity in the UK, contributing £68 million in gross value added (GVA) and supporting 1,230 jobs annually, including £13 million GVA and 190 jobs locally. By 2050, with increased deployment, these figures could rise to £169 million GVA and 3,710 jobs nationwide, with £42 million GVA and 650 jobs in local areas. This reflects both direct construction and operational impacts as well as broader economic benefits from enhanced grid functionality.
Grid Efficiency and Cost Savings
- PHS increases grid efficiency by reducing renewable energy curtailment. It allows excess electricity generated by intermittent sources like wind and solar to be stored and used when demand is high, enhancing overall system utilization and reducing waste.
- This improved efficiency translates into consumer savings by lessening the need for additional transmission infrastructure and decreasing reliance on more expensive or polluting standby generation assets.
Stability and Security of Supply
- Pumped storage provides essential grid services such as frequency regulation, load balancing, and rapid response to demand spikes. Its ability to dispatch stored energy within minutes helps maintain electricity stability, which is crucial for integrating variable renewables.
- This reliability reduces the need for fossil fuel backup plants, thereby lowering operational costs and carbon emissions.
Long-Term Cost-Effectiveness and Sustainability
- PHS systems have long operational lifespans, often several decades, with relatively low maintenance costs. This durability makes them a cost-effective energy storage solution compared to alternatives.
- Utilizing water as the storage medium leverages a renewable resource, aligning with sustainability goals and supporting a transition to a low-carbon energy system.
Summary Table of Economic Benefits
| Benefit | Description |
|---|---|
| Economic impact and jobs | £68m to £169m GVA and 1,230 to 3,710 jobs supported in the UK (current to 2050 forecast) |
| Grid efficiency improvements | Reduces curtailment, maximizes renewable energy use, lowers infrastructure costs |
| Consumer cost savings | Less need for transmission upgrades and fossil backup generation; lowers electricity costs |
| Grid stability and security | Fast response times, frequency regulation, load balancing, reduces blackout risks |
| Long-term cost-effectiveness | Durable infrastructure with low maintenance over decades |
| Environmental sustainability | Uses renewable water resource, aids in carbon reduction goals |
In conclusion, pumped hydro storage provides substantial economic benefits by enhancing grid efficiency, reducing costs for consumers, creating jobs, and enabling higher integration of renewable energy sources, all while supporting a more reliable and sustainable electricity system.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-economic-benefits-of-using-pumped-hydro-storage-for-renewable-energy-integration/
