Conditions for economic competitiveness of pumped storage hydroelectric power plants in Egypt

Abstract

Pumped storage hydroelectric power plants are one of the most applicable energy storage technologies on large-scale capacity generation due to many technical considerations such as their maturity, frequency control and higher ramp rates, thus maintaining following loads in case of high penetration of renewables in the electrical grid. Economic viability of PSHPPs is still questionable when compared with other electricity generation technologies. In this manuscript, the key factors that affect the viability of constructing PSHPP in Attaqa Mountain, Egypt, are defined. An economic comparison between PSHPPs and simple cycle gas turbine power plants has been carried out to identify the conditions at which PSHPPs will have competitiveness as an on-peak solution, over traditional SCGT power plants. This assessment is based on calculating levelized cost of electricity taking into account different scenarios for PSHPP pumping cost and capital cost, and different scenarios for SCGT fuel prices. The results showed the key factors of the best case at which PSHPPs have the highest economic competitiveness over SCGT power plants when fuel prices are non-subsidized. This is only valid provided that the PSHPP’s capital cost should not exceed 4180 $/kW at zero pumping cost.