Risk mitigation and investability of a U-PHS project in the Netherlands
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)
More Info
expand_more
Other than for strictly personal use, it is not permitted to download, forward or distribute the text or part of it, without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license such as Creative Commons.
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.