| Title |
Economic Analysis of Distribution Pumped Storage Power Plant in Metropolitan Area |
| Authors |
Sung-Min Park ; Chul-Won Park |
| DOI |
http://doi.org/10.5207/JIEIE.2025.39.1.52 |
| Keywords |
Benefit cost; Distribution pumped storage power plant; Economic analysis; Multipurpose hydroelectricity; Net present value; Pumped storage hydropower |
| Abstract |
Pumped Storage Hydropower is one of the large-scale Energy Storage System that is economical to ensure the stability of power grid and to supply the power demand smoothly. When large-scale RES is supplied to the metropolitan area, transmission constraints and transmission congestion may occur. Therefore, by linking the construction of power plants to high-load demand areas in order to minimize transmission congestion and transmission network construction, problems caused by the transmission network can be alleviated. In this paper, we propose Distribution Pumped Storage Power Plants (DPSP) that do not require lower reservoirs around existing multipurpose hydroelectric power plant dams in terms of role diversification of hydroelectric power plants. In order to analyze the validity of the proposed DPSP and evaluate the value of the investment plan, an economic analysis is performed using Net Present Value (NPV) and Benefit Cost (B/C). As a result of analyzing KHNP’s cost and profit data by applying them to the 3GW ratio, when the operating period was 30 years and the discount rate was 4.5%, NPV was analyzed as -427.3 billion won and B/C was 0.396 in 2019. In addition, when the operating period was 40 years and the discount rate was 4.5%, NPV was -44,521 billion won and B/C was 0.431. |