Timing Optimization Method for Pumped Storage Plant Construction Considering Capital Expenditure Capacity Feedback

Jie Jiao, Xiaoquan Lei, Puyu He, Qian Wang, Guangxiu Yu, Wenshi Ren and Shaokang Qi ()
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Jie Jiao: State Grid Sichuan Economic Research Institute, Chengdu 610041, China
Xiaoquan Lei: State Grid Power Company of Sichuan Province, Chengdu 610041, China
Puyu He: State Grid Sichuan Economic Research Institute, Chengdu 610041, China
Qian Wang: State Grid Sichuan Economic Research Institute, Chengdu 610041, China
Guangxiu Yu: State Grid Sichuan Economic Research Institute, Chengdu 610041, China
Wenshi Ren: State Grid Sichuan Economic Research Institute, Chengdu 610041, China
Shaokang Qi: School of Economics and Management, North China Electric Power University, Beijing 102206, China

Energies, 2024, vol. 18, issue 1, 1-20

Abstract: With the extensive integration of renewable energy into the power grid, pumped storage power plants have become an essential component in the development of modern power systems due to their rapid response capabilities, advanced technology, and other beneficial features. However, high construction costs and irrational capital expenditure and construction schedules have constrained the robust and sustainable growth of pumped storage plants. Therefore, this paper proposes a pumped storage plant construction timing optimization method considering capital expenditure capacity feedback. Initially, an analysis is conducted on the factors that influence the capital expenditure costs of pumped storage power plants throughout their lifecycle. Next, the value of investing in pumped storage plants is assessed across three different aspects: economics, environment, and reliability. Finally, according to the principle of dynamic planning combined with the actual needs and capital expenditure potential of pumped storage plants, the sum of the capital expenditure effectiveness values in each stage is used as the indicator function of each stage to construct the pumped storage plants project capital expenditure timing optimization model, and a simulation analysis is carried out with Province Z as an example to verify the validity and applicability of the proposed model. The findings indicate that the suggested model is effective in balancing the implementation time of individual projects to achieve the maximum cumulative capital expenditure performance over the entire planning period.

Keywords: pumped storage power plant; capital expenditure capacity; timing optimization; capital expenditure effectiveness (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: 2024
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