Quantifying the value of pumped storage hydro (PSH) in the Saudi electric grid

Abstract

The potential increase of the connected capacity of renewable energy sources in Saudi Arabia will open the doors for more investment in energy storage especially pumped storage hydro (PSH). New PSH, particularly in areas with increased wind and solar capacity, would significantly improve system reliability while reducing the need to construct new fossil-fueled generation. PSH is proving to be an established technology for renewable power because it can absorb excess generation and release it during peak demand times. PSH can also provide many ancillary services to the power system that should be added to the benefits of PSH projects, such as increased flexibility, primary frequency response, following reserves, and fast-acting regulation reserves. PSH is typically not adequately represented during the optimization of the commitment and dispatch formulations in which reduces their perceived benefits. The paper discusses how to quantify PSH benefits to the power system operators so that the PSH projects would be more economically viable to the Kingdom and more appealing for private investment. Potential market changes that can help PSH in today's restructured markets are presented and discussed in this paper.