Value Evaluation Method for Pumped Storage in the New Power System

Abstract

When integrating the generation of large-scale renewable energy, such as wind and solar energy, the supply and demand sides of the new power system will exhibit high uncertainty. Pumped storage power stations can improve flexible resource supply regulation in the power system, which is the key support and important guarantee for building low-carbon, safe, and efficient new power systems. Limited by the current operation mode and electricity price mechanism, the pumped storage power station cost cannot be effectively recovered, and the value cannot be reasonably compensated, resulting in difficult return on investment, single investment subjects, and notable industry development difficulties. According to the operational requirements of the new power system, combined with the various functions of pumped storage power stations, the value of pumped storage power stations in the new power system was analyzed. Based on the equivalent value substitution principle and system operation simulation, a pumped storage value evaluation method for the new power system was proposed. The new power system operation was simulated considering the dispatching model of wind and photovoltaic power abandonment penalties. Under the same dispatching objectives, the output of various power sources and power generation operating costs with and without pumped storage power stations in the system were compared. From economic, safety, social, and environmental benefit perspectives, a quantitative model of the pumped storage power station value was established, covering seven dimensions: asset investment savings, power generation operating cost reduction, flexible adjustment capability improvement, system resilience enhancement, power outage loss reduction, renewable energy consumption, and emission reduction promotion. Based on the new power system operation and planning data for southern China, the value of typical pumped storage power stations was analyzed, and the results showed that with new power system's construction and development, the value of pumped storage power stations is increasing, and the value structure is closely related to power grid characteristics. This value evaluation method could provide references for pumped storage investment decisions, subsidy policies, and price mechanisms to fully utilize the role of pumped storage power stations and promote high-quality development of new power systems.