Measures for determining electricity prices for pumped storage capacity

Should electricity capacity fee and pumping-loss fee be included in the cost sharing mechanism?

Regarding the cost sharing mechanism, it is suggested that the electricity capacity fee and pumping-loss fee should be all included in the allowable transmission and distribution costs of the regional power grids, which can be further transmitted to the provincial power grids.

What is the allowable cost of a power grid?

The allowable cost of the power grid is specified in the transmission and distribution tariff determination method. It includes the "ancillary service" fee (that is, the electricity capacity of the capacity) purchased by the grid enterprises from PHES.

What is the capacity of pumped hydro storage station?

(b) Capacity of the pumped hydro storage station was 2400 MW. From Fig. B, Fig. 7, the power stability of the transmission lines must be ensured by abandoning wind or solar power when the WFs or PVs independently operate, owing to the power fluctuation characteristics, leading to a relatively low utilisation efficiency of renewable energy.

Are pumped hydro storage stations marketable in China?

Fig. 1. Capacity development of pumped hydro storage stations in China. In China, PHS are not fully marketable because of their imperfect power market mechanisms. Therefore, a two-part tariff, including the energy and capacity tariffs, is adopted as the benefit-recovery scheme of the PHS.

What is a capacity pricing model?

Zhang et al. established a capacity pricing model that considered the investment cost of marginal units during annual peak loads to truly reflect the future and marginal values of the generation capacity [ 11 ].

How to calculate PHS per unit installed capacity?

(16) M CB, PHS = M RI ⋅ χ PHS M PHS = M CF, PHS + M CB, PHS where MCB,PHS are the compensation benefits of the PHS based on the allocation method and MPHS is the total revenue of the PHS. Considering the capacity, electricity revenue, and pumping cost of the PHS, the capacity tariff of the PHS per unit installed capacity is obtained using Eq. (17).