Pumped storage hydropower (PSH) is a type of hydroelectric energy system that can store and generate electricity by moving water between two reservoirs at different elevations. This form of hydropower provides energy storage and other grid services that can help to integrate additional renewable resources, such as wind and solar, with the power system.
Most PSH plants in the United States were built between 1960 and 1990, and increases to PSH capacity over the past thirty years have been almost exclusively due to upgrades to existing plants. Renewed interest in PSH development started in 2000, but low electricity prices through the 2010s challenged the business case for the investment to build new facilities. Recent federal legislation has introduced new incentives to encourage PSH development, including tax credits in the 2022 Inflation Reduction Act for new energy storage facilities, and expedited Federal Energy Regulatory Commission (FERC) licensing processes for closed-loop systems in the 2018 American Water Infrastructure Act.
By the end of 2021, 96 new PSH projects were in the developmental pipeline, and nearly 60% of those projects are located in the West. Projects with a preliminary FERC permit are still at the feasibility stage and currently have a high attrition rate. Three closed-loop projects have been issued FERC construction licenses and have been granted extensions to continue pre-construction efforts, including securing additional permits, financing, and power purchase agreements: (1) Eagle Mountain (CA); (2) Gordon Butte (MT); and (3) Swan Lake (NV). Two more projects have applied for FERC construction licenses within the past year, the Goldendale Energy Storage Project (WA) and the Seminoe Pumped Storage Project (WY).
WSWC members desired a forum to discuss the challenges and opportunities of PSH projects, to better understand how the projects use water resources, and to develop some insights into what sort of water rights might be needed, and what state permitting decisions they need to be prepared to make for this new generation of PSH projects.
An Introduction to Pumped Storage Hydropower | February 14, 2023
This webinar provided a high-level overview of the energy storage concept; a description of open- and closed-loop systems; an explanation of modern technologies and energy capacities; and
PSH support for variable energy resources such as solar and wind.
Presenters: Vladimir Koritarov, Director of the Center for Energy, Environmental, and Economic Systems Analysis at Argonne National Laboratory; and Rocio Uria Martinez,
research and development staff member at the Oak Ridge National Laboratory.
Permitting and Processes for New Pumped Storage Hydropower Systems | April 12, 2023
In this webinar, presenters from federal agencies and national labs provided a high-level overview of the various permitting processes and issues involved in developing a new pumped storage hydropower project. Topics included the Federal Energy Regulatory Commission licensing process, environmental issues and compliance requirements, Reclamation’s lease of power privilege process, and findings from the National Renewable Energy Laboratory on steps to help navigate these different procedures.
Presenters: Emily Carter with the Federal Energy Regulatory Commission, Clark Bishop with the Bureau of Reclamation, Bo Saulsbury with Pacific Northwest National Laboratory, and Aaron Levine with the National Renewable Energy Laboratory
Pursuing Pumped Storage Hydropower | May 3, 2023
In this webinar, non-governmental entities discussed their experiences pursuing new pumped storage hydropower projects in the West. The webinar covered lessons learned and current challenges in the field.
Presenters: Erik Steimle with Rye Development, Tim Hemstreet with PacifiCorp, and Lars Dorr with rPlus Hydro.
Steimle talked about the multi-year permitting process for two western closed-loop projects. Swan Lake, in Klamath Falls, Oregon, anticipates receiving a Notice to Proceed in early 2024, making it the first pumped storage project that will be built in the U.S. in over 30 years. The Goldendale project in Washington is located on a Brownfield redevelopment site. They anticipate a full Federal Energy Regulatory Commission (FERC) license in 2024. He noted that a significant lesson learned is the need for tailored messaging, and the importance of understanding who the stakeholders are and what matters to them.
Hemstreet talked about the important role of pumped storage in balancing the variability of solar and wind renewables and in diversifying and optimizing power transmission. He noted that the permitting process with FERC and other federal and state agencies can be confusing, lengthy, and burdensome, often presenting conflicting interests, priorities, processes, and data needs. The lack of standardization is a challenge unique to hydropower, due to the need to take advantage of specific geography (e.g., elevation difference) and geology, and the need for site-specific engineering. There is significant variation in the receptiveness of communities, stakeholders, and resource managers.
Dorr talked about the Seminoe Reservoir open-loop project in Wyoming. The initial fill of the project would require 13,500 acre-feet, and they are obtaining water rights through the Bureau of Reclamation and the Casper-Alcova Irrigation District. The project has a water quality study pending. He noted that, compared with wind and solar development, the pumped storage hydropower projects are much more expensive and complex, involving a longer timeline (approximately ten years from development to permitting to construction) and more risk. The increased interest in pumped storage hydropower in the past decade corresponds to the increase in solar and wind projects. He said some of the challenges they’ve encountered include: (1) federal and state agency staff turnover; (2) new study requests from agencies that cause the permitting process to feel like a moving target; (3) detailed questions from FERC while the project is still early in the design process; and (4) agencies and individuals with a single priority or statutory mandate that don’t consider the overall benefits of a project (economic, environmental, etc.) or the relatively benign impact as a whole. The recorded webinar is available at: https://westernstateswater.org/events/pursuing-pumpedstorage-hydropower/
Pumped Storage Hydropower Workshop | May 24, 2023