Introduction of pump storage hydro power in Romania to provide balancing energy and ancillary services to the electricity market

Abstract

The Business plan deals with the development of Pump Storage Hydro Power in Romania in order to provide Ancillary Services and Balancing Energy for the electricity market. Whereas Ancillary Services are need to stabilise the electrical grid (technical balancing), Balancing Energy is needed in order to allow power producers to economically balance between forecasted and actual delivered energy. Due to the increasing development of renewable energy the need for Balancing Energy but also for Ancillary Services are increasing. Pump Storage Hydro Power would be able to make a significant contribution to the supply of to those raising demands. The business plan investigates on the current market structure, which are characterised by a regulated market for Ancillary Services and which is expected to fully liberalize in 2018. Considering the current capital market, small and flexible Pump Storage Hydro Power Units are developed in order to be able to provide both, Ancillary Services and Balancing Energy at the same time, depending on the market situation and the degree of technical regulations and standards, which might impose certain restriction during operation. Based on the market analysis, a detailed investigation of the project development process and the necessary capital requirements, a business model was created which allows a successful penetration of the power service market. An experienced Management Team and a well connected Advisory Board will guarantee the effective implementation of the business model and business plan.