Pumped Hydroelectric Energy Storage as a Facilitator of Renewable Energy in Liberalized Electricity Market

Lazar Šćekić, Saša Mujović and Vladan Radulović
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Lazar Šćekić: Faculty of Electrical Engineering, University of Montenegro, 81000 Podgorica, Montenegro
Saša Mujović: Faculty of Electrical Engineering, University of Montenegro, 81000 Podgorica, Montenegro
Vladan Radulović: Faculty of Electrical Engineering, University of Montenegro, 81000 Podgorica, Montenegro

Energies, 2020, vol. 13, issue 22, 1-18

Abstract: Besides many benefits deriving from the energy transition process, it is not uncommon for modern power systems to be faced with difficulties in their operation. The issues are dominantly related to the non-dispatchable nature of renewable energy sources (RES) and the mismatching between electricity generation and load demand. As a consequence of a constant peak load growth, this problem is particularly pronounced during the daily peak hours. Therefore, it is of great importance to conduct all necessary activities within the system in order to preserve the system stability and continuity of operation. Energy storage systems have been recognized as a major facilitator of renewable energy, by providing additional operational flexibility. Since pumped hydroelectric energy storage (PHES) accounts for almost 97% of the world’s storage capacity, in this paper, we have investigated the benefits of using pumped-storage hydropower in modern power systems characterized by high penetration of RES and the liberalized electricity market. A novel operation algorithm has been developed which finds the balance between providing additional flexibility by alleviating the peak load and obtaining financial revenue to justify the high investment costs associated with PHES. The algorithm has been tested for the daily and monthly operation of the Tonstad PHES in the dynamic environment of the Norwegian power system.

Keywords: pumped hydroelectric energy storage; energy management; peak shaving; electricity market; renewable energy sources (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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