Research on Cost and Economy of Pumped Storage Power Station under the Background of Power Market Reform

With the increasing scale of new energy construction in China and the increasing demand of power system for regulating capacity, it is imperative to accelerate the large-scale application of energy storage. Pumped storage power station as the most mature technology, the most economical, the most large-scale construction of energy storage technology, it plays an indispensable role in the new power system. This paper focuses on the whole life cycle cost of the pumped storage power station, and analyzes the business model and economy of the pumped storage power station by stages based on the development trend and characteristics of the power market. At the current stage, the pumped storage power station may be at a loss or break-even. With the continuous maturity and improvement of the electricity market, the pumped-storage power station will turn losses into profits, with good economic benefits. Finally, relevant suggestions are given for investors on the development of pumped storage power stations. This paper provides the method and idea of cost and economy calculation of pumped storage power station, and provides decision support for investors to develop and construct pumped storage power station combined with the development process of power market.