Hydropower is not only about generating electricity from rivers. It is also about storing energy. The japan hydro energy market includes pumped storage hydropower (PSH), which is the largest and cheapest form of grid-scale energy storage.

Pumped Storage Hydropower (PSH)

The [LSI keyword: japan hydro energy market] is defined by PSH. A PSH plant has two reservoirs: one at a higher elevation, one at a lower elevation. When electricity is cheap (off-peak, or when solar is abundant), the plant pumps water from the lower reservoir to the upper reservoir. When electricity is expensive (peak demand), the plant releases water from the upper reservoir to the lower reservoir through turbines, generating electricity. The round-trip efficiency is about 70-80%. The japan hydro energy market for PSH is large: Japan has over 25 GW of PSH capacity, making it one of the world leaders. PSH is used for: peak shaving (meeting daily demand peaks), load following (matching supply to demand), frequency regulation (keeping the grid stable), and renewable integration (storing excess solar and wind). The japan hydro energy market for PSH is growing, as Japan adds more solar (which produces a midday peak) and more wind (which is variable). Without PSH, much of that renewable energy would be curtailed (wasted).

The japan hydro energy market for PSH is divided into "closed-loop" (using two reservoirs that are not connected to a natural river) and "open-loop" (using a river as one reservoir). Closed-loop has less environmental impact (no river flow alteration). The japan hydro energy market for closed-loop PSH is preferred for new projects. The japan hydro energy market for "variable-speed" PSH (using adjustable speed turbines) is more efficient and provides faster response.

The Economics of PSH

The japan hydro energy market for PSH is capital-intensive (high upfront cost) but has low operating cost (no fuel). The economics depend on the price difference between off-peak and peak electricity. When the spread is wide, PSH is profitable. When the spread is narrow, PSH is less attractive. The japan hydro energy market for PSH is also supported by capacity payments (payments for being available to generate, regardless of whether they are dispatched) and by ancillary service payments (for frequency regulation). The japan hydro energy market for "long-duration" storage (discharging for 8-12 hours) is well-suited to PSH; batteries are better for short-duration (1-4 hours). The japan hydro energy market for PSH is also used to provide "black start" capability: restarting the grid after a blackout using stored water.

As the japan hydro energy market continues to evolve, the focus will be on converting existing conventional dams to pumped storage (adding a lower reservoir), on building new closed-loop PSH in mountainous areas (away from rivers), and on integrating PSH with offshore wind (using the wind farm's power to pump water). The japan hydro energy market is essential for Japan's energy transition, providing the storage that makes high levels of solar and wind possible. PSH is a proven technology, and Japan is a global leader.

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