Investment Efficiency Assessment Model for Pumped Storage Power Plants Considering Grid Operation Demand under Fuzzy Environment: A Case Study in China

Yan Lu, Xuan Liu, Yan Zhang, Zhiqiao Yang () and Yunna Wu ()
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Yan Lu: State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, China
Xuan Liu: State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, China
Yan Zhang: State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, China
Zhiqiao Yang: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Yunna Wu: School of Economics and Management, North China Electric Power University, Beijing 102206, China

Sustainability, 2023, vol. 15, issue 11, 1-23

Abstract: As China develops new power systems such as wind power, photovoltaic, pumped storage, and other clean energy installations, its clean energy ratio is steadily increasing. However, the high percentage of clean energy brought by the new power system does not make everything right. Clean energy sources such as wind, photovoltaics, pumped storage, and other sources are inevitably unstable, and they create large amounts of waste if they are not directly used. Additionally, at the peak of electricity consumption, if the power is not generated in time, it will negatively impact society. Therefore, the significance of building pumped storage power plants will be greatly enhanced. The scope of the text is evaluates the investment efficiency of pumped storage power plants. We selected data from North China region, Northeast China region, East China region, Central China region, Northwest China region, and Southern China region to comprehensively evaluate the return on investment of pumped storage power plants in six different regions. In order to solve this problem, this paper will use various models and algorithms, such as cloud model and AHP method to establish a set of evaluation indicators around three basic points to evaluate the benefits of pumped storage, and then use the fuzzy comprehensive evaluation method to evaluate the level of each indicator. Finally, the benefits of establishing pumped storage power plants are comprehensively evaluated. Following the comprehensive evaluation, we have identified the efficiency scores of investing in pumped storage power plants in different regions of China, thus not only proving that pumped storage power plants have a broad market space in China, but also further proving where we should focus on building pumped storage power plants. Based on these criteria, a series of recommendations are made.

Keywords: pumped storage power plants; investment efficiency assessment; energy storage; grid operation demand; cloud model; fuzzy integrated evaluation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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