Economic Benefits
Construction and Development
- Investment and Job Creation: The development and construction of pumped hydro storage projects require significant investments, which can create thousands of jobs. For example, in the UK, increasing pumped storage hydro capacity to meet government targets might necessitate investments of £19-21 billion, generating substantial employment opportunities during the construction phase.
- Local Economic Impact: These projects often support local economies by providing employment opportunities in rural areas, which can help retain working-age populations and boost regional growth.
Operational Impact
- Gross Value Added (GVA): Pumped storage hydro projects can contribute significant amounts to the GVA. In the UK, additional capacities could lead to an annual GVA of £169 million by 2050.
- Job Sustainability: Once operational, these projects can sustain hundreds of jobs, contributing to stable employment in both local and national contexts.
- Grid Efficiency and Cost Savings: By reducing curtailment and integrating variable renewable energy sources like wind and solar, pumped hydro storage can enhance grid efficiency, leading to savings for consumers and reducing the need for additional transmission infrastructure.
Market and Energy Integration
- Renewable Energy Support: Pumped storage hydro supports the integration of intermittent renewable energy sources into the grid, making it easier to scale up solar and wind power.
- Flexibility and Ancillary Services: It provides essential ancillary services to balance supply and demand, supporting grid reliability and resilience.
Overall, pumped hydro storage projects offer significant economic benefits through job creation, local economic growth, and efficient grid operation, making them a valuable component in transitioning to renewable energy-based power systems.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-potential-economic-benefits-of-implementing-pumped-hydro-storage-projects/
