Generation portfolios with intermittent renewables: Is pumped-storage the efficient complement?

Power systems with a high share of wind and solar power require a complementing generation portfolio to balance intermittent supply. Pumped-storage plants can provide the required flexibility, whereas gas plants offer an alternative solution. This paper presents a peak-load-pricing model to describe the efficient pumped-storage capacity for high-renewable scenarios in Germany. Sensitivities are derived from a stylized analytic model and confirmed by a quantitative optimization.