This technical assistance project will provide support to the Department Of Energy (DOE) in developing de-risking mechanisms for pump storage hydro (PSH) project development. There are two work packages being tendered as part of the overall initiative Enhancing Hydro Energy Storage Viability. The implementing partners of these two work packages are expected to collaborate, where applicable, to deliver the expected project outputs. This Terms of Reference (TOR) document refers to Work Package 1 covering non-coastal, non-salinated PSH projects as stand-alone energy storage system. The project aims to address the upfront risks to PSH project development so that it can be utilised as the long-term, viable energy storage solution for the grid to facilitate variable renewable energy (VRE) integration. The de-risking components in this project include the initial siting of potential PSH sites, developing environmental, social impacts, grid connectivity assessment framework for PSH project development, and conducting a market assessment study for power generated from PSH. Related capacity building for policymakers, as well as stakeholder engagement activities, will also be carried out. Enabling PSH as the energy storage for a grid with VRE uptake will address grid-connection issues associated with it such as RE curtailment and load shifting, frequency problems, black start, and capacity firming.
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