Pumped-Storage Hydroelectricity for a Sustainable Electricity Transition

Abstract: This master thesis explores the application of Pumped-Storage Hydroelectricity (PSH) within an electricity market characterised by a substantial share of renewable and intermittent electricity production. The purpose of PSH is to enhance the alignment of supply with demand by storing energy at electricity surplus and releasing it during shortage. The Juktan Power Station, once the largest pumped hydro storage facility in Sweden with a storage capacity of about 25 GWh and maximum generation of 335 MW, serves as a case study. An in-depth analysis of the properties of the Swedish electricity market and its influencing factors is conducted. Wind speed data is successfully used to increase accuracy of price prediction. Furthermore, a model is developed to calculate potential profitability employing various operation methods. In conclusion, large-scale PSH provide significant benefit to the stability of the electricity system with a clear increase in value after 2020. However, concerns about grid tariff design, electricity market development and energy storage incentives means that investments are not obviously profitable.