The cost of pumped hydro storage projects is influenced by several key factors. These can be broadly categorized into direct costs, indirect costs, and site-specific considerations.
Direct Costs
- Technology and Storage Systems: The cost includes expenses for constructing dams, reservoirs, energy storage systems, turbines, and generators.
- Component Costs: Costs per unit of components such as turbines, generators, and dam materials. These costs are often affected by technological advancements and supply chain factors.
- Reservoir and Dam Size: Larger reservoirs and dams require more materials, increasing costs. The size of these components is usually determined by the desired energy storage capacity.
Indirect Costs
- Project Management and Design Engineering: These costs typically include project management, design engineering, and construction management services.
- Contingency Costs: These are included to account for unexpected expenses during construction, such as changes in market conditions or unforeseen site difficulties.
- Regulatory and Permitting Expenses: The cost of obtaining necessary licenses and permits can add to the overall indirect costs.
Site-Specific Considerations
- Geography and Terrain: Difficult terrain and challenging geology can increase costs by requiring more complex excavation techniques and additional infrastructure for access roads and transmission lines.
- Head and Storage Duration: Higher head (difference in water level between reservoirs) can reduce tunnel excavation costs, while longer storage durations benefit from economies of scale by spreading fixed costs over more energy storage.
- Regional Cost Adjustments: Costs can vary based on local labor rates, material availability, and inflation rates.
Overall, the cost of a pumped hydro storage project can range from about $2,250 to $3,500 per kilowatt, depending on these factors.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-factors-influence-the-cost-of-pumped-hydro-storage-projects/
