Cost–Benefit Analysis of Pumped Hydroelectricity Storage Investment in China

Abstract

In this study, the energy scenario in China was analyzed by retracing the trend of exponential population growth, gross domestic product (GDP), and electricity production and consumption. A forecast up to 2050 was made based on the history and forecasts of other field studies. It was possible to deduce data on pollutants in terms of CO2 equivalent (CO2-eq) emitted over time if there were no changes in the way energy was produced. Moreover, different scenarios were hypothesized for the use of pumped hydroelectricity storage plants, namely 4.5%, 6%, 8%, 11%, and 14% (percentage of electricity compared to requirements in 2050), to balance variable renewable energy sources and avoid curtailment, thereby reducing the use of energy produced by coal-fired plants. For this implementation, direct and indirect costs and benefits were considered, with interesting results obtained from an economic standpoint and very positive results from environmental, social, and territorial perspectives.

Keywords

• pumped hydro storage
• renewable energy sources
• electricity
• cost–benefit analysis