Pumped hydroelectric energy storage (PHS) offers significant long-term cost benefits, making it a highly cost-effective and efficient form of energy storage. Here are some of the key advantages:
Longevity and Durability
- Extended Lifespan: New pumped storage facilities have expected lifespans of over 100 years, which significantly reduces the overall cost per unit of energy stored when amortized over this time period.
- Low Maintenance: They require relatively low maintenance costs due to their simplicity and robust construction, further enhancing their cost-effectiveness.
Efficiency and Capacity
- High Efficiency: PHS systems are highly efficient, typically achieving energy efficiency rates between 75% and 80%, making them more efficient than many alternative energy storage systems like hydrogen and compressed air.
- Long-Duration Storage: PHS can provide extended periods of electricity supply, often exceeding the capacity of lithium-ion batteries by about 40% in terms of hours of electricity supplied.
Economic Benefits
- Energy Arbitrage: PHS facilities can take advantage of energy arbitrage by storing energy when it is cheap and releasing it when demand and prices are high, thus generating revenue and offsetting costs.
- Capacity Payments: These systems can receive payments for their capacity to supply energy during peak demand periods, adding to their financial viability.
- Infrastructure and Job Creation: The development of PHS systems contributes to job creation and economic growth, particularly in local communities.
Environmental and Societal Benefits
- Integration with Renewables: PHS supports the integration of renewable energy sources like solar and wind by providing a reliable backup when these sources are unavailable, helping reduce reliance on fossil fuels.
- Reduced Greenhouse Gas Emissions: By facilitating the use of renewable energy, PHS helps mitigate climate change by reducing greenhouse gas emissions.
Overall, while the initial investment in PHS is high, its long lifespan and low operational costs make it a cost-effective solution for energy storage over the long term. However, securing patient capital is necessary to take full advantage of these benefits.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-long-term-cost-benefits-of-pumped-hydroelectric-energy-storage/
