What is the return rate of pumped storage projects

Projections by the International Renewable Energy Agency (IRENA) to meet a global net-zero scenario by 2050 indicate that over 420 GW of PSH will be required, which means about 10 GW/year of new installed capacity or an annual installed capacity growth rate of approximately 3. Base year capital costs and resource characterizations are taken from a national closed-loop PSH resource assessment and cost model completed under the U. It is a configuration of two water reservoirs at different elevations that can generate power as water moves down from one to the other (discharge), passing through a turbine. This report focuses on energy markets, energy storage legislation and policy, development opportunities and challenges, technological advancements, and the Council’s recommendations to unlock this proven long duration renewable storage resource. Adjustable speed (AS), arbitrage, black start, fixed speed (FS), frequency regulation, hydropower, inertia, inertial response, inertial support, pumped hydroelectric storage (PHS), pump-turbine, ramping support, reactive power, renewable energy resources (RERs), run-of-the-river (RoR), valuation. This report is available at no cost from the National Renewable Energy Laboratory (NREL) atNREL 46526. This report, originally published in September 2023, has been revised in March 2024 to improve and correct.