By the end of 2017, the global installed capacity of pumped storage was 161,000 megawatts. Since 2010, China alone has added nearly 15,000 megawatts of pumped storage capacity. By 2030, the world's existing pumped storage plants will increase their capacity by about 50%, and the installed pumped storage capacity is expected to increase by about 78,000 mw, with the main increase in China (up to 50,000 mw).

Our correspondent Yang Xiao ran reports: world Hydropower Association (International Hydropower Association, IHA) recently released report - the global Hydropower battery: pumped storage and clean energy transformation "(hereinafter referred to as the" report "), points out that by the end of 2017, the global pump storage capacity is 161000 mw, China made a great contribution for this reason, since 2010, China alone has increased nearly 15000 mw pumped storage capacity.

The report predicts that the world's existing pumped storage power stations will increase their capacity by about 50% by 2030, and the installed capacity of pumped storage is expected to increase by about 78,000 megawatts, mainly in China (up to 50,000 megawatts). In Europe, where renewable energy growth requires greater flexibility, pumping capacity is expected to grow slightly by 2030, between 8,000 and 11,000 megawatts. Most of the new projects in Europe are expected to be concentrated in Switzerland, Austria, the UK, Portugal and France, while some projects in Romania, Ireland and Ukraine are likely to continue.

The report says pumped storage is seen as a key way to integrate renewable energy as it becomes a bigger part of the grid. At present, pumped storage hydropower reserves have accounted for more than 94% of the global total.

It is known that China's current pumped storage power stations in operation and under construction reach 192.3 million kw and 30.15 million kw respectively, and the pumped storage capacity will be about 60 million kw during the 13th five-year plan period. By 2020, China's installed capacity of pumped storage is expected to reach 40 million kw. According to the report, increased demand for flexibility in power systems, especially the reduced reliance on wind and solar power, is the main reason for the continued increase in pumped storage installations in China.

"The role of pumped storage in the growing electricity market is also changing." According to the report, the traditional generator can provide the necessary system balancing services for the power system under the previous low permeability level of renewable energy. However, as the share of renewable energy continues to grow and traditional generators begin to be replaced in some power systems, power system planning and operation will need to be adjusted and upgraded to increase flexibility. In addition to technology, the increasing penetration rate of renewable energy in the power system may significantly affect the spot market price and hourly price. Therefore, pumped storage enterprises should also make corresponding technical and business adjustments.

The report also analyzes new investment opportunities and business models for pumped storage, and further points out that as a mature technology, pumped storage projects face a long-term incubation period and return period, with high upfront costs.

It is understood that the vast majority of small hydropower projects in the world are in public ownership, and these projects are often undertaken by vertically integrated utility companies, which enjoy a monopoly position due to their ownership and operation of power generation, transmission and distribution assets. The fact that many projects are being developed under similar market structures suggests that liberalized markets remain inadequate in encouraging development and rewarding services, and that market policies and regulations are not yet clear, which may lead to higher borrowing costs and discourage investment in new projects.

According to the report, the revenue model of pumped storage projects can be roughly divided into "service cost", "direct participation" and "off-balance-sheet generation". Among them, China's pumped storage is currently using the "service cost" mode of payment or electricity pricing mechanism, reflecting its value in the power system. In liberalized markets with classified pricing, regulators tend to limit the benefits of large storage facilities such as pumped storage.

It is understood that the revenue model has been the core problem restricting the development of pumping stations. Hydropower industry experts said that China's current electricity price policy and two-part system electricity price has not been fully implemented, not conducive to the development of pumping storage. The expert once suggested that in the future, power grid enterprises could open up the development and construction market of storage power stations, operate them in a unified way through leasing or acquisition, and use market forces to promote the rapid development of storage power stations. In addition, the development of pumping storage still needs to establish a diversified investment mechanism, encourage the investment of social capital, promote the marketization of pumping storage power station investment and construction, and coordinate and study the investment and operation management mode of pumping storage power station.