German, Swiss, Austrian Agencies to Work Together to Support Pumped Hydro Storage

The German Federal Association of Energy and Water Industries (BDEW), VSE (Switzerland) and the Austrian Energy Association have agreed to collaborate to enable the building of more pumped storage hydro power plants, according to German Energy Blog.

This includes advocating at the national and EU levels to ensure fair regulatory conditions for these plants. BDEW notes that pumped hydro storage is among the most economical storage technologies for electricity, but argues that its value is not currently recognized due to peculiarities of electricity markets.

The agency explains that pumped hydro storage plants depend largely on the price differences between base and peak prices at electricity exchanges, which have been lessened due to the addition of renewables. Additionally, the low price for carbon emissions allowances is a factor.

In terms of regulatory action, BDEW is calling for measures that reduce duties but abstain from interventions.

Projects under construction to cover needs until 2020

170 pumped hydro storage plants operate in Europe with a total capacity of 12.5 GW, mostly in Austria, Germany and Switzerland. An additional 11 GW are under construction, which BDEW says would cover the need for storage and flexibility in the three nations until 2020.

Pumped hydro storage in Scandinavia has proven very effective in balancing the large concentration of wind generation in Denmark, thanks to an active electricity trade between Denmark, Norway and Sweden.