Pumped Storage Revenue Recovery: Debating and Discussing Options and Opportunities

Across the world, 52 of the 56 new pumped-storage projects are receiving government financial assistance, which reveals two insights:
1) there’s a need for pumped storage around the world
2) there is a significant absence of private revenue streams to fund these projects

Here in the U.S., that same need for revenue recovery is significant. As an industry, we need to discuss/debate various revenue recovery models and come to consensus about a model that best fits pumped storage development.

This unique session features two parts:

In Part 1, individuals will advocate for specific business models for revenue recovery:
• Performance Incentive Payment -- "Getting paid for ancillary services": Advocate: Paul Jacobs
• Energy Policy Payments/Carbon Market -- "Receiving government assistance because it’s a societal benefit": Advocate: Todd Briggeman
• Long-Term Power Purchase Agreement (PPA)/Cap and Floor Policy -- "Getting pumped storage in a utility’s rate base": Advocate: Chuck Kahler
• Storage as a Transmission Asset -- "Getting pumped storage in a utility's base rate by socializing the cost of pumped storage": Advocate: Luigi Resta

In Part 2, the session moderator will lead a group discussion about which of the business models advocated for in Part 1 seem most feasible in the U.S., given economics and political situations, and will lead to successful financial closure for new pumped storage.

Presenter(s)

Todd BriggemanProject Manager, Hydropower and Hydraulic StructuresBlack & VeatchModerator

Paul JacobChief Executive OfficerRye DevelopmentSpeaker

Chuck KahlerVice President, Hydropower Sector LeadStantecSpeaker

Luigi RestaPresidentrPlus HydroSpeaker