Will Pumped-Hydro Energy Storage Business Models Work for Peak Shaving Use?

Abstract

The desire for improved environmental sustainability continues to reduce reliance on fossil carbon based energy usage, while increasing installation of renewable energy sources in Australia and in the Pacific region. Pumped hydro energy storage systems (PHESS) are a technology that can be used to improve network stability where high penetration of renewable energy sources exist. However current participation in the Australian Electricity Market by PHESS does not match international participation in other electricity markets. This paper reviews international CAPEX costs and cos oft recharge energy for PHESS to better understand its potential use in the Australia national energy market. Deep sea PHESS as a conceptual emerging technology is also compared. PHESS and DSPHESS modelling in Australia and Fiji are developed to assess the final cost of energy from these sources in relation to peak shaving application. Part of each model is a sensitivity study of final cost of electricity produced from PHESS systems based on CAPEX costs and recharge energy costs.