What factors affect the economic benefits of pumped storage power stations?

In addition, under the three development models, the three factors of capacity electricity price, capacity ratio covered by approved electricity price, and energy conversion efficiency also impact the economic benefits of pumped storage power stations. 1. Introduction

What is the price mechanism of pumped storage power stations?

In terms of the pumped storage price mechanism, most of the existing studies focus on the price mechanism of pumped storage power stations at a certain stage, including the current two-part price mechanism and the bidding mechanism under the market environment, and the horizontal comparison of the multi-stage price mechanism is lacking.

How can pumped storage power stations be fully independent?

In the model of “completely independent participation in the market”, the technical transformation of the pumped storage power station should be accelerated, the energy conversion efficiency of the power station should be reasonably improved, the power loss should be reduced, and the cost recovery of the power station should be promoted.

How much electricity does a pumped storage power station generate?

Within 5 years, the pumped storage power station will pump 2.09 billion kWh of electricity annually and generate 1.682 billion kWh of electricity annually. Figure 5. Power consumption/power generation of the pumped storage power station during 2018-2022 (billion kWh). The typical daily operation strategy of the power station is shown in Figure 6.

How does a capacity tariff work for grid-side energy storage stations?

However, according to the current policy of regulatory pricing, particularly the "Opinions on Further Improving the Price Formation Mechanism for Pumped Storage Energy", the capacity tariff for grid-side energy storage stations essentially functions as an equal annual payment mechanism for initial investment recovery.

How do energy storage operators make decisions?

Energy storage operators act as followers, making decisions regarding storage capacity and operational strategies based on the tariffs set by the grid. Their decision-making process incorporates historical capacity tariffs, operating costs, expected returns, and market dynamics.