Assessing the Value of Pumped Storage Hydropower (PSH) in Appalachian Virginia to the U.S. Eastern Interconnection

Abstract

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​Decarbonization of the grid will be central to achieving carbon-neutral energy systems by mid-century. Renewable energy sources such as wind and solar are essential to the transition to a low-carbon society and have been rapidly growing. With the influx of more renewables into the U.S. Eastern Interconnection, extended-duration energy storage facilities will be crucial in reducing curtailments and improving grid reliability. Pumped storage hydropower (PSH) offers a mature and reliable extended duration storage opportunity for excess energy in the grid, and the Appalachian region offers favorable terrain for its development. However, the value of such development, both locally and system-wide, remains understudied. This study fills that gap by evaluating the techno-economic value of PSH development at a representative brownfield site in Appalachia, assessing its potential to reduce system prices and lower emissions across the Eastern U.S. For this study, the Grid Operations Eastern Interconnection (GO-EAST) model was used to conduct simulations of levelized energy production costs based on open-source synthetic grid databases. GO-EAST uses a unit commitment/economic dispatch optimization algorithm to determine the least cost hourly dispatch of generators across the electric grid to meet electricity demands. From this model, we find that expanding PSH capacity in Appalachia is most beneficial in the summer when demand and price variability are high. Adding PSH also reduces reliance on coal, replacing its production with natural gas. This significantly lowers both energy prices and emissions of CO2 and criteria air pollutants, even without greater renewable integration. These benefits extend far beyond the local region thanks to grid connections, yielding system-level benefits that are underestimated by simplified, lumped electricity dispatch models.