Development of the methodology for the evaluation of a hydro-pumped storage power plant: Swiss case study

• Published in: Energy strategy reviews Vol. 9; pp. 8 - 17
• Main Authors: Iliadis, N.A., Gnansounou, E.
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.03.2016
• Subjects: Day ahead spot market; Intraday spot market; Long term valuation; Power plant operation policy; Intraday spot market; Power plant operation policy; Day ahead spot market; Long term valuation
• ISSN: 2211-467X; 2211-467X
• DOI: 10.1016/j.esr.2015.10.001

During the last two decades, an evolving market structure is recognised starting from the spot market and its derivatives, resulting to several other markets such as the Intraday Market (IM), the Balancing Market (BM) and the Reserve Capacity Market (RCM). The participation in these markets has changed significantly the operation policy of the plants and, consequently, their value in the market. The current paper deals with the problem of the long-term valuation of a Hydroelectric Pump Storage (HPS) plant participating in the DAM and IM. For this purpose, an appropriate methodology has been developed while it is demonstrated on a real case study concerning the operation of a Swiss based HPS plant that participates in the DAM and IM of the German electricity market, for a horizon of thirty-five (35) years. •Day ahead electricity market price proxy long-term simulation.•Intraday electricity market price proxy long-term simulation.•Dynamic stochastic programming algorithm for the simulation of operation of a hydro pumped-storage operation simulation.•Financial and economic calculation of hydro pumped-storage value in the long-term.•Methodology development for the valuation of a storage power plant in the long-term.