© VERBUND AG, Electricity Storage and Hydropower

Pirker, Prague 03.12.2012

Operation of Hydro Pump Storage Power – in the past – in the future

Is there still Hydro Pump Storage Potential in Europe?

Hydro Pump Storage projects - today

HPP Storage versus other storage technologies

Today – more questions than answers © VERBUND AG, www.verbund.com Storage or Flexibility

European energy targets – 20/20/20 targets Energy Roadmap 2050 More electricity generation from renewable energy sources till 2020 and beyond

The Challange: To tackle the transformation of the energy system in the most cost- efficient way

20 percent of renewable energy in share of total energy consumption until 2020

Source: NREAPs

very high fluctuations & in the future temporarily power surplus

Extremely large power gradients

Long time periods with no wind (calm)

We need „security of supply“

enough reserve capacity Reliable electricity supply SUPPLY SYSTEM enough for the customer Powerplant outages grid capacity grid interruption Volatile generation Quality quick demand changes quick response Quantity capacity affordable Price

storage

Very high fluctuation by wind and PV generation  enough reserve capacity and storage capacity with quick response

extremely large and steep power gradients (ramping +/-)  flexible generation units with quick response, spinning reserve by rotating masses

(short - term) surplus production by wind or/and PV  energy storage, flexible base load generation

Long periods with no wind generation  enough reserve capacity (from storage); e.g. gas fired powerplants?

Short-term & long-term storage will be needed

Hydropower provides both – Flexibility and Storage (short and long term) © VERBUND AG, www.verbund.com Operation of Hydro Pump Storage Power – in the past – in the future

Hydropower dominated System

schematically performance chart

21. Sept. 2011, PM Page 19

Operation of PS-HPP – in the past and today

Regelpumpenbetrieb Kopswerk II Ist-Leistung des Kraftwerks Kopswerk II

200

150 Ist-Leistung KOW II M2

100

0 MW 29.10.2010 12:00 29.10.2010 14:00 29.10.2010 16:00 29.10.2010 18:00 29.10.2010 20:00 29.10.2010 22:00 30.10.2010 00:00

-50

-100

-150

-200 Zeit Quelle: Illwerke AG

© VERBUND AG, www.verbund.com Drivers and background for the construction of storage and pump storage plants Storage – and Pumpstorage Power Plants are the perfect Powerplants for the provision of Reserve- and Control Capacity

• Quelle: Prof. Brauner / TU Wien)

Generation of renewable energie from natural Flow High efficiency and high reliability Control capability - electric energy is produced when it is needed in the system In Pumpstorage HPP – Taking out electric energy from the grid

Controllability of different power plants

Nuclear Power Hard coal Lignite Combined- Pumped Plants fuelled power fuelled cycle gas storage power plants power plants power plants plants

Start-up time cold ~ 40 hours ~ 6 hours ~ 10 hours < 2 hours ~ 0,1 hours

Start-up time warm ~ 40 hours ~ 3 hours ~ 6 hours < 1,5 hours ~ 0,1 hours

Load gradient increase ~ 5% per minute ~ 2% per minute ~ 2% per minute ~ 4% per minute > 40% per minute nominal output Load gradient decrease nominal ~ 5% per minute ~ 2% per minute ~ 2% per minute ~ 4% per minute > 40% per minute output

Source: Eurelectric

Most Hydropower Plants are more or less flexible

 Storage HPP – primary and secondary frequency control

 Pondage HPP – run of river HPP with the ability to shift the flow over a few hours – primary and secundary fequency control

 Run of River HPP – primary frequency control

 Pump Storage HPP – primary and secundary frequency control and storage

Source: Eurelectric

9000

8000

7000

6000

5000

4000

Pumping Capacity [MW] Capacity Pumping 3000

2000

1000

UK Spain Cyprus Norway Estonia Ireland Greece Poland Turkey Austria France Slovakia Slovenia Hungary Bulgaria Belgium Lithuania Portugal Germany Luxembourg Switzerland Czech Republic

Existing PSPPs Licenced PSPPs Planned PSPPs

Technical Data: Capacity: 450 MW 510 MW QA Turbine mode: 80 m³/s Max. h: 798 m QA Pump mode: 56 m³/s 3 Units each One Pelton-turbine á 150 MW One pumpe á 150 MW One generator á 200 MVA

3 transformer á 200 MVA

30m Rifabecken Balancing Reservoir Rifa

Stauziel Schieberstollen Druckschacht

Turbine Absenkziel

Druckluftkammer

Verbindungsstollen 61m Pumpensteigleitung Motor

Wandler

Pumpe

Pumpwasserstollen

horizontale Pumpenleitung

Quelle: Alpine BEMO Tunneling

Quelle: Illwerke AG

Pump Storage HPP Capacity 2 x 240 MW

Reservoires Wasserfallboden (81 Mio. m3) Mooserboden ( 85 Mio. m3)

Pumpturbine 2 vertikal pumpturbinen units

Total capacity 480 MW im pump- u. turbine mode

Height: 365 m

Total costs 405 Mio. €

Construction time 1,5 Jahre planing time 5,5 Jahre construction time

Quelle: VERBUND

Technische Daten:

• Kavernenkraftwerk mit 2 aufgelösten Maschinensätzen

• Nennleistung der Maschinensätze: 360 MW

• Turbinenwassermenge: 164 m³/s

• Tief liegender Druckstollen mit 6,80 m Innendurchmesser (Fräsdurchmesser 7,70 m) Quelle: Illwerke AG

• Stollenlänge dieses Druckstollens rd. 3000 m

Quelle: Illwerke AG

Linthal 2015 under construction 1.000 MW Nante Drance under construction 900 MW

Veytaux/Leman under construction 240 MW

Bernina (Lago Bianco) planed 1.000 MW

Grimsel 3 planed 600 MW

Verzasca planed 300 MW

Total 4.040 MW

Portugal

A further 10 new hydroelectric power plants are planned to be completed by 2020, providing an extra 1.100 MW. Investments: 2 bn. €

Source: Ceinturion Source: EDP

TransformationUmwand- lungsverlustlosses Pumped Methani- Cost degression ("round trip") hydro sation until bis 2020 Hydrogen 90% H2-gas storage turbine 80% ● Might make sense on the ● Retrofit in Alpine storages 70% long-term ● Limited potential for new ● Mobile, i.e. appropriate for 60% construction Fuel cell „power- to-transport“ D-CAES 50% Zebra- Lead-acid Competitors also in Competitors in the 40% AA-CAES NaNiCl battery Flow the transport electricity market battery 30% market Li-ions Compressed 20% air storage Batteries 10% (CAES) Sodium- Retrofit New built sulfur 0% ● Requires salt caverns – 0 200 400 600 800 ● Potential depends on potential in northern Europe KapitalkostenCapital costs [€[€/kw/a]/kw/a] learning effects ● Attractive where network ● May be viable decentrally congestion arises Depends on lifetime, size of Size = typical plant ● Mobile the storage etc. size Source: Frontier Economics

● Pumped hydro storages best combine investment costs, lifetime and efficiency Conclusion ● However, the technical potential for PHS within the EU is limited - this makes it even more important to use the existing potential

Revenues and Costs of PSHPP and Risks Costs Revenues • Investment costs Electricity sales in turbine mode • Electricity market price for pumping (+ Aditional Revenues for the provision ca.20-25 % cycle losses!) of Reserve- and Regulation capcity • Operation and Maintenance Costs • Grid fees (Turbin and Pump) • System Service Fees

Risks (longterm investment): financal risks (financing the large investments) technical risks Market price risk Grid fees,….Concession risk, Grid situation, ….

• Limited economical displayability No usage fees for Usage fees for peak – off peak price (grid feeding tarifs) new PSHPP pumping energy, Usage fees for • No full cost reflectance grid feed

• Rising investment costs usage fees for pumping energy, Usage fees for grid • Network-usage-fees feed

• Missing market model for system services No usage fees No usage fees • Missing grid extention for pumping for pumping energy energy (Infrastructure subsidies alternate storage technologies except PSHPP) Good conditions Bad conditions Not examined

Currently there is no clear market model for investing in Hydro Pump Storage Power Plants

A market model for storage technologies has to be developed

Subsidies only for R&D

Distortions through subsidies should be avoided