A unit commitment and economic dispatch model of the GB electricity market – Formulation and application to hydro pumped storage

We present a calibrated unit commitment dispatch model of the GB electricity market applied to an economic analysis four existing hydro pumped storage (PS) stations in GB. More variable renewable (VRE) increases PS profit by amount dependent on generation mix. With large share coal, 1 percentage point (p.p) increase VRE total average 2.3 p.p. more flexible system, achieve similar profitability, wind and solar should rise than 60% supply. Inflexible coal with high price volatility that drives arbitrage revenue. Higher system flexibility smooths variability limits arbitrage, increasing role balancing ancillary service Between 2015 22 were inactive managing transmission constraints but provided 18% fast reserve, response other reserve services 2022. Stacking up modelled revenue from 2022 revenues against ongoing fixed costs suggests are quite profitable. However, will not be enough cover capex opex new 600 MW station without opportunities. • market. Economics examined. driving arbitrage. profitable when considering both services. cannot totex station.