Keywords: availability, available capability, decision analysis based solutions, financial contract hedging, physical asset hedging, pump storage hydro, reliability, renewable energy, standardisation, wind energy, wind power
Integration of pump storage hydro with wind energy
Renewable energy has significant advantages as it does not contribute to Greenhouse Gases (GHG). Wind energy is a renewable energy alternative that is being installed worldwide. However, wind energy is unpredictable and thus, unavailable as compared to conventional generation. The availability of wind energy compared to conventional power plants is a cause of contention. Currently, the rate of wind energy availability is ∼50%. The thermal unit reliability rate is ~90%. For comparison, standardising the availability of wind energy and the reliability of thermal unit into equivalent unit, 'available-capability', is necessary. It is desirable to construct the available-capability of wind energy to be equivalent with thermal unit. Therefore, the conversion of electrical energy produced by the wind into another form is necessary. This paper introduces a decision analysis based solution of incorporating the wind energy with either hydro plants or financial contract hedging. This energy technology integration increases the available-capability of wind energy to be as effective as thermal unit.