The long-term operational costs associated with pumped hydro storage (PHS) typically include both fixed and variable expenses. Here’s an overview of these costs:
Fixed Operational Costs
- Fixed O&M Costs: These are generally reported as ranging from $18 to $28 per kilowatt-year for conventional hydropower and specifically $18/kW-yr for PHS facilities.
- Personnel and Maintenance Labor: Typically, a PHS facility requires a team of operators to manage its 24/7 operations, which can include maintenance tasks such as routine checks and repairs.
Variable Operational Costs
- Overhaul Costs: Scheduled overhauls are required every decade, estimated at a cost of $16/kW-year or approximately $40 million per 250 MW unit.
- Parts Replacement: Parts are estimated at 40% of labor costs and are considered a constant $/kW across different power levels.
- Energy Costs: While not directly a maintenance cost, the cost of electricity to pump water back into the reservoir is a significant variable expense. This cost depends on market electricity prices and is critical for profitability.
Other Considerations
- Efficiency and Energy Spreads: The efficiency of a PHS system is typically around 85%, meaning that more energy is required to pump water than is generated when it falls back down. Thus, profitability depends on electricity price spreads (i.e., the difference in price between when you pump and when you generate).
- Environmental and Social Factors: Long-term operational costs can also include expenses related to environmental impact studies, compliance with regulations, and social costs associated with local community impacts.
Overall, while pumped hydro storage offers valuable energy storage capabilities, its profitability and operational viability heavily depend on electricity price fluctuations and efficient operations.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-long-term-operational-costs-associated-with-pumped-hydro-storage/
