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

Journal Article (2020)
Author(s)

Gert Jan Kramer (Universiteit Utrecht)

T. Arts (O-PAC Ontwikkelingsmij)

Janos L. Urai (RWTH Aachen University, Geostructures—Consultancy for Structural Geology and Geomechanics)

JK Vrijling (TU Delft - Hydraulic Structures and Flood Risk)

Jan M.H. Huynen (Sogecom B.V)

Research Group
Hydraulic Structures and Flood Risk
Copyright
© 2020 Gert Jan Kramer, Twan Arts, Janos L. Urai, J.K. Vrijling, Jan M.H. Huynen
DOI related publication
https://doi.org/10.3390/en13195072
More Info
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Publication Year
2020
Language
English
Copyright
© 2020 Gert Jan Kramer, Twan Arts, Janos L. Urai, J.K. Vrijling, Jan M.H. Huynen
Research Group
Hydraulic Structures and Flood Risk
Issue number
19
Volume number
13
Pages (from-to)
1-18
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Abstract

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.