Valuation of pumped storage in capacity expansion planning: a South African case study
Date
2021
Journal Title
Journal ISSN
Volume Title
Publisher
MDPI
Abstract
ENGLISH ABSTRACT: According to South Africa’s national energy policy, network penetration of variable renewable energy (VRE) generation will significantly increase by 2030. Increased associated network
uncertainty creates the need for an additional flexible generation. As the planned VRE is mostly nonsynchronous PV and wind generators, additional ancillary services will also be required. Pumped
Storage (PS), which is a well-established flexible generation technology with fast ramping capability
and the ability to contribute various ancillary services, could help integrate increased VRE penetration on the South African network. However, in the latest revision of South Africa’s energy policy, PS
was left out in favor of gas turbines and batteries as favored flexible generation options. This paper
explores the two-part hypothesis that PS was disadvantaged in the formulation of a national energy
mix due to: (a) ancillary services provided by PS not being explicitly monetized in energy modeling
software; (b) the uncertainties associated with project costing assumptions. The value of PS in terms
of providing ancillary services is firstly explored using the international literature. Secondly, the
impact of input-cost uncertainties is demonstrated by comparing pumped storage, gas turbines, and
batteries using levelized cost of energy (LCOE) curves and the Tools for Energy Model Optimization
and Analysis (Temoa), North Carolina State University, USA, optimization software. Based on LCOE
calculations using revised cost assumptions, it is found that PS may indeed be preferential to gas
turbines or batteries, particularly at large load factors. The authors hope that this research contributes
to the scientific understanding of the role that PS can play in supporting the integration of generation
from renewable sources for effective grid operations.
Description
CITATION: Van Dongen, C., Bekker, B. & Dalton, A. 2021. Valuation of pumped storage in capacity expansion planning - a South African case study. Energies, 14:6999, doi:10.3390/en14216999.
The original publication is available at https://www.mdpi.com
The original publication is available at https://www.mdpi.com
Keywords
Citation
Van Dongen, C., Bekker, B. & Dalton, A. 2021. Valuation of pumped storage in capacity expansion planning - a South African case study. Energies, 14:6999, doi:10.3390/en14216999.