PUMPED STORAGE

HYDROPOWER (PSH)

NWHA

2/18/15

Swan Lake North: Reaching competitive economics

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PSH OVERVIEW

PSH is a known storage technology that is widely deployed

PSH in today's markets will be built for different reasons than past

PSH without a mandate must be competitive with other capacity technologies, such as an LMS100 flexible gas turbine

Swan Lake North can be competitive with design changes to accomplish this

In CA:

• Hyatt

• Helms

• Castaic

• Lake Hodges

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EDF RENEWABLE ENERGY AND EDF CIH

EDF RE is leveraging EDF CIH expertise in PSH

EDF Hydro Engineering Center (EDF-CIH) Unparalleled Global Experience

600 hydroelectric schemes

Complete hydro engineering services

spectrum

1,000 employees with more than

six hundred engineers

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SWAN LAKE NORTH:

PROJECT

CHARACTERISTICS

Location: Approximately 11 miles NE of Klamath Falls, Oregon

Private and BLM Property

Water Availability: Leased groundwater rights,

preliminary OWRD approval

Transmission Access South of Malin; near COB;

PacifiCorp and CAISO

Total Capacity: 300 to 400MW

Project Head: 1,500+ feet

Closed-Loop System New upper and lower

reservoirs

No impact to existing water ways

Initial fill and evaporation makeup from existing ground water wells

Source: WECC, Principal Transmission Lines

Swan Lake North is going through

some significant design changes

to decrease its cost, increase its

value, and improve its feasibility.

This right-sizing exercise is critical

for all storage development.

EXAMPLE: CASTAIC PSH IN CALIFORNIA

Redesign Concept:

• Above ground penstocks

• Above ground power house

Old Swan Lake Design

New Swan Lake Design

Castaic PSH 1,500MW

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$21.40

$19.34

$15.19

$13.55

$29.03 $28.79 $28.30

$27.81

$4.59 $4.15

$3.26 $2.37

$10.00 $10.00 $10.00 $10.00

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

0 100 200 300 400 500 600 700 800 900

Val

ue

or

Co

st (

$/k

W-m

o)

Capacity (MW)

Elasticity Analysis of PLEXOS Size Sensitivity Modeling

Total Value

Hard Value

Project Cost

Total Value

Hard Value

Project Cost

Thin lines = Swan Lake Thick lines = LMS100 Dashed lines = projected

At 300MW in size, Swan Lake quickly approaches the net cost-benefit of an LMS100 installation.

($7.63)/kW-mo

($5.41)/kW-mo

Old Project Size More Optimal Project Size

A smaller project is more competitive

Elasticity is a measure of impact on value or cost as a function of a critical input: in this case project size.

CONCEPT REDESIGN

CHANGING FUTURE CAN IMPACT SWAN LAKE

NORTH POSITIVELY

Higher Renewables

Higher Gas Prices

GHG Initiatives

$

$

Several Alternative

Scenarios may

raise the value of

Swan Lake North

by a fair degree.

$

$

CA=33% base case

could rise in a 2 to 3 year

period?

Modeled at 40% RPS in CA. CA=$10/ton base case

could rise in a

2 to 5 year period?

Not modeled, but

expect similar effect

to that of Higher

Renewables.

$5.14/MMBtu base case

could rise in a 5 to 10 year

period?

Modeled at $5.76/MMBtu high

gas price.

Swan Lake North is

expected to COD in

late 2021;

(seven years from now).

Elasticity=

0.80

Elasticity=

1.03

Elasticity Meaning for

300MW Optimal Project

Size:

40% RPS in CA may raise

value by 17% or $3.64/kW-

mo.

$5.76/MMBtu high gas price

may raise value by 12% or

$2.57/kW-mo

These values are lower for a

600MW project as the Total Value

of the larger project is less.

PSH IS AWESOME!

ONLY A MACROBIOTIC DRINK CAN DO MORE

BY THE NUMBERS

300MW of Swan Lake North is the equivalent of

=

100MW of new super peaking generation that is carbon free

40MW+ of new load following flexible generation capacity

125MW+ of new system load (primarily off-peak)

50MW+ of a new wind farm for avoided curtailment

50MW+ of coal plant retirement for carbon reduction

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DA TO HA MARKET VALUE COMPARISON

WHEN UTILIZED IN THE MARKET (MWH OF USE)

$21.54

$20.10

$-

$5

$10

$15

$20

$25

$30

$35

$40

$45

Ave

rage

On

e Y

ear

$/M

Wh

Uti

lize

d

Swan Lake North gets 51% of its total market value

(marginal benefit) from Arbitrage Revenue

Ancilliary ServiceRevenue

Arbitrage Revenue

All

Har

d V

alu

e

51%

HOUR AHEAD OPERATIONS

$25.78

$14.53

$-

$5

$10

$15

$20

$25

$30

$35

$40

$45

Ave

rage

On

e Y

ear

$/M

Wh

Uti

lize

d

Swan Lake North gets 64% of its total market value

(marginal benefit) from Arbitrage Revenue

Ancilliary ServiceRevenue

Arbitrage Revenue

All

Har

d V

alu

e

64%

DAY AHEAD OPERATIONS

The bar charts illustrate how

storage provides increasing

value in the form of ancillary

services as the scheduling

window approaches real-time

dispatch.

Pumped storage has a min

pump/generation volume and

typically can not devote 100%

of Its capacity to ancillary

services. This is an advantage

batteries have at the moment.

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SPRING DA TO HA DISPATCH SCHEDULE

-800

-600

-400

-200

0

200

400

600

800

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

MW

pe

r H

ou

r

Hour Ending

Operations on 4/1/2022

Spin/Flex Down

LF/Reg/Flex Down

Pumping

Non-Spin/Flex Up

Spin/Flex Up

LF/Reg/Flex Up

Generation

Note: long & low output

Only 4.5 hours full power storage required

DAY AHEAD OPERATIONS

-800

-600

-400

-200

0

200

400

600

800

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

MW

pe

r H

ou

r

Hour Ending

Operations on 4/1/2022

Spin/Flex Down

LF/Reg/Flex Down

Pumping

Non-Spin/Flex Up

Spin/Flex Up

LF/Reg/Flex Up

GenerationOnly 6.5 hours full power

storage required

#1

#2 Note: change to mid-day pumping

HOUR AHEAD OPERATIONS

Storage flexibility is illustrated here showing

significant schedule changes due to continued

reoptimization at each scheduled window.

Day Ahead and Hour Ahead are shown.

The last and most valuable scheduled window

is the Real-time in a 5 minute market.