Cost Diversion Strategies for Pumped-Storage Tariffs for New Power Systems

Abstract

Pumped-storage plants are the most significant electrical storage component in new power systems and show great potential for scaling up. In this paper, economic costs and benefits have been investigated. Both the costs and benefits can be divided into transmission and distribution tariffs; however, various factors need to be considered to reduce costs in transmission and distribution tariffs. The cost characterization methodology for pumped-storage power plants has been developed. A mathematical model for dispersal through the medium and long-term electricity market, the electricity spot market, the ancillary services market, and the leasing of capacity to scenic power stations has been proposed. A case study has been discussed for a regional grid company and a provincial grid company; also, the effectiveness of dispersal has been analyzed based on the case study. The results indicate that when the spot market and the capacity leasing of new energy sites play the largest role in the diversion, the transmission and distribution prices in Province A can be controlled within 1 cent/kWh by applying various diversion methods.