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:
• Getting pumped storage in a utility’s rate base
• Getting paid for ancillary services
• Getting a loan guarantee from the U.S. Department of Energy’s Loan Programs Office (LPO)
• Receiving government assistance because it’s a societal benefit
In Part 2, the session moderator will lead a group discussion about which of the business models advocated 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.