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Solar Energy Perspectives - IEA

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Chapter 11: Testing the limits<br />

Photo 11.1 Okinawa’s pumped-hydro plant using the ocean as lower reservoir<br />

Source: J-POWER.<br />

Key point<br />

Many opportunities exist for seawater pumped-hydro plants on the shore.<br />

Figure 11.7 Sample scheme of a dyke creating an artificial offshore basin in shallow<br />

waters for pumped-hydro<br />

Chalk<br />

Sand/gravel<br />

Existing chalk<br />

Breakwater<br />

0 100m<br />

Source: François Lempérière/Hydrocoop.<br />

Key point<br />

Large offshore seawater pumped-hydro plants would cost 50% more than onshore plants.<br />

Investment costs for pumped hydro stations vary from USD 500/kW in the easiest cases to USD<br />

2000/kW for the most difficult cases or coastal marine pumped hydro facilities. Assuming an<br />

average cost of USD 1 500/kW with 10% discount rate, investment costs would amount to costs<br />

of USD 90/MWh shifted, plus 20% of the generating cost of each shifted MWh to account for<br />

the losses (i.e. on average USD 20 per MWh shifted). So the total storage cost would be about<br />

USD 110/MWh shifted. If the cost of storage is computed with respect to the total variable<br />

207<br />

© OECD/<strong>IEA</strong>, 2011

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