UK hydro storage undervalued
4th October 2016 | Commercial Energy
There needs to be a radical overhaul of the way pumped storage hydro’s benefits are quantified to reflect the value it can bring to the electricity system, according to a new report by DNV GL. The report is called “The Benefits of Pumped Storage Hydro to the UK” and was funded by the Scottish Government, SSE and ScottishPower and recommend ways to encourage the expansion of the technology.
The report says that Government and regulators should work more closely together to reduce the risk presented by policy decisions, while government should also consider the introduction of a cap and floor style mechanism, as used by interconnectors which have a similar investment profile to pumped storage hydro. It also says that network charging arrangements are fair and considered.
The UK electricity system already benefits from 24GWh of pumped storage capacity, split across four sites (mostly in Scotland) with another 50GWh having planning permission.
Scottish Renewables policy officer Hannah Smith said, “It is important that government creates the right policy environment to encourage investment. We would like to see a more level playing field for pumped storage hydro which reflects the value it can bring to the electricity system.”
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