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3.1 PumpedStorageHydropower(PSH) Technology Summary for Policymakers PSH is the most developed and widely commercialized energy storage technology for power sector applications globally. PSH is marked by large capacities and long durations that make it well-suited for services such as load following or energy arbitrage, charging during times of cheap power and meeting demand during system peaks. Despite its well-developed status, PSH is limited by its geographic requirements and high upfront capital cost, which may be a strong barrier to its continued deployment in certain contexts. PSH facilities are typically large-scale facilities that use water resources at different elevations to store energy for electricity generation. The basic components of a PSH unit include an upper reservoir, a lower water reservoir, a penstock or tunnel, a pump/turbine, and a motor/generator. The motor/generator and pump/turbine are located in a powerhouse that is connected to a local electrical substation. PSH facilities can have open-loop or closed-loop water systems. An open-loop PSH facility has at least one reservoir that is continuously connected and replenished with a naturally flowing water source. In contrast, a closed-loop PSH facility uses two artificially constructed lower reservoirs, and the system must be periodically replenished with water. In both configurations, the upper reservoir is replenished with water pumped through the penstock from the lower reservoir. Electricity is generated when water is released from the upper reservoir, traveling down through the penstock into the powerhouse where the increased water pressure drives the turbine that powers the generator. Many new proposals tend to use closed-loop designs because the regulatory oversight and development time is anticipated to be shorter when not impacting existing natural waterbodies. Regardless, pumped hydropower requires locations suitable to host these facilities, which may be difficult to find close to where the energy storage is needed and electrical interconnection is available. There is about 131 GW of PSH capacity currently in operation worldwide, representing about 97% of global energy storage capacity. Furthermore, in many jurisdictions, there is already significant hydropower resources, which could be operated as a flexible resource to reduce the need for other sources of energy storage or which could potentially be converted or retrofitted to provide PSH capabilities. Modern PSH facilities have long operational lives of 50–60 years and, while older systems typically had efficiencies in the range of 60%–75%, newer installations can exceed 80% round trip efficiencies. Over 70% of PSH plants currently installed in the United States were designed to provide daily energy shifting with a duration in the range of 4 to 8 hours. One advantage of PSH compared to other storage technologies is that increasing storage duration (i.e., higher energy capacity) is relatively inexpensive, assuming favorable topology for the upper reservoir. During periods with low electricity demand and high energy availability, electricity can be used to pump water to the upper reservoir. When demand for electricity is highest, water can be released from the upper reservoir to generate electricity.9 This daily operational cycle helps reduce the need for peaking generation from more costly and potentially polluting 9 The presence of low cost variable renewable energy can play an important role in how energy storage systems, including PSH are operated by changing the residual or net load that must be met by system operators. For instance, high penetrations of solar PV may shift low demand periods from the night to the middle of the day. Denholm and Margolis (2018) show that as solar PV penetration increases in California, shorter duration energy storage can help meet peak demand. Increasing penetrations of solar PV have already begun affecting the pumping patterns of PSH in California, with increasing pumping occurring in the day as more solar PV has been added (Somani et al. 2021). 19 This report is available at no cost from the National Renewable Energy Laboratory (NREL) at www.nrel.gov/publications.PDF Image | USAID GRID-SCALE ENERGY STORAGE TECHNOLOGIES PRIMER
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