Predicting Grid and Market Trends to Maximize Pumped Storage Hydropower Flexibility

A team led by the Missouri University of Science and Technology built an optimization model to help grid operators decide how to distribute a pumped storage hydropower (PSH) facility’s time between generating power and pumping water to store energy. The model has enormous potential to increase electricity market efficiency and profit for PSH owners while reducing costs for energy consumers. 

The model leverages real data and operational experiences from industry partners to ensure it is accurate and can provide results quickly. The team estimated that using the PSH optimization model could result in up to a 97% increase in PSH operator profit and reduce total system costs by up to 0.67%. Annually, this could result in tens of millions of dollars saved for large grids that stretch across multiple states and potentially lower the cost consumers pay for energy. This model could help further support the clean energy transition by helping to integrate more renewable energy onto the electricity grid. By maximizing PSH facilities’ flexibility, grid operators will be able to balance the fluctuations of other renewable energy sources.