Prospects for Pumped‐Hydro Storage in Germany

Abstract:     
After a period of hibernation, the development of pumped‐hydro storage plants in Germany regains momentum. Motivated by an ever increasing share of intermittent renewable generation, a variety of energy players considers new projects, which could increase the available capacity by up to 60% until the end of the decade. This paper analyzes the current development and evaluates the revenue potential as well as possible barriers. Overall, the prospects for new pumped‐hydro storage plants have improved, even though profitability remains a major challenge.

Number of Pages in PDF File: 25

Keywords: pumped‐hydro energy storage, power plant investment, Germany

JEL Classification: L94, Q42, Q48

working papers series