LAUSR

Abstract One of the most considerable current discussions in many countries is the valuing of pumped storage hydropower plants (PSHPs) in power grids. Calculating the value of PSHP can provide an appropriate perspective in the pricing of these large-scale storage systems. In this paper, first, a method to determine the scheduling of the Siahbishe PSHP to have the maximum impact on peak shaving and valley filling, considering the daily generation scheduling program of the thermal units in Iran power grid is proposed. Then, a mechanism for estimating the value of the PSHP in Iran’s national grid based on modified efficiency indices of the thermal units and the daily equivalent fuel-saving concept is suggested. Other benefits of the PSHP such as providing ancillary services in the power grid are not taken into account in the valuing. Therefore, the actual value of the PSHP is expected to be higher than the estimated value. To demonstrate the effectiveness of the proposed mechanism, numerical studies are done based on the actual data from Iran power grid in a two-year period (April 2015-March 2017). According to the results, the Siahbishe PSHP plays an important role in reducing production costs with an approximate annual value of 93,793,000 $.