Risk mitigation and investability of a U-PHS project in the Netherlands

Risk mitigation and investability of a U-PHS project in the Netherlands

Kramer, Gert Jan (Universiteit Utrecht)
Arts, Twan (O-PAC Ontwikkelingsmij)
Urai, Janos L. (RWTH Aachen University; Geostructures—Consultancy for Structural Geology and Geomechanics)
Vrijling, J.K. (TU Delft Hydraulic Structures and Flood Risk)
Huynen, Jan M.H. (Sogecom B.V)

2020

We review the status of a 1.4 GW, 8 GWh underground pumped hydro storage (U-PHS) project in the southern Netherlands, which has been under development since the 1980s. Its history shows how the prospect of a large-scale U-PHS for The Netherlands (a country whose proverbial flatness prohibits PHS) has been attractive in every decade, based on proven technology in a subsurface location with validated properties, and solid analysis of its economics. Although the ongoing energy transition clearly requires massive electricity storage, (U-)PHS projects are challenging investment propositions, in The Netherlands, as elsewhere. This case study illustrates a point of general relevance, namely that although the project execution risk, related to uncertainty with respect to subsurface integrity, is very low, the transition risk, associated with the intrinsic uncertainties of an electricity system in transition, is significant. We point out mitigation strategies for both risk categories.

Electric grid stabilization
Electricity storage
Energy transition
Pumped hydro storage
Regional economic development
Renewable energy

http://resolver.tudelft.nl/uuid:c492d39d-47e2-4ab4-af3b-e0b14bebc784

https://doi.org/10.3390/en13195072

1996-1073

Energies, 13 (19), 1-18

Institutional Repository

journal article

© 2020 Gert Jan Kramer, Twan Arts, Janos L. Urai, J.K. Vrijling, Jan M.H. Huynen