PROJECTS / Assessment of the Conceptual Role and Economic Viability of Pumped Hydropower Storage in the Southern Africa Power Pool

Assessment of the Conceptual Role and Economic Viability of Pumped Hydropower Storage in the Southern Africa Power Pool

Sub-Saharan Africa

January 15, 2025

The World Bank engaged K&M Advisors to assess the conceptual role and economic viability of Pumped Hydropower Storage (PHS) within the Southern African Power Pool (SAPP). The objective of the study was to identify and quantify the costs, benefits, and overall value of PHS in enhancing energy security, improving climate resilience, and supporting a low-carbon energy transition in the region. The findings from this assessment are intended to inform and guide policy decisions by SAPP member governments regarding the development and integration of PHS projects into their energy strategies. This effort supports the region’s broader goals of sustainable energy development and long-term reliability of power systems.

K&M Advisors executed a comprehensive analysis to evaluate the feasibility and strategic value of PHS in the SAPP region. The team began by conducting an extensive literature review of global and historical developments in PHS projects to understand best practices and technological advancements. Additionally, K&M reviewed Integrated Resource Plans (IRPs), power system development plans, recent power system modeling studies, and the SAPP Plan to assess the current and future energy landscape in the region.

To gain critical insights, K&M conducted stakeholder interviews with key SAPP utilities and institutions to identify regional energy challenges and opportunities where PHS could add value. The team evaluated how specific benefits of PHS, such as providing flexible energy services, supporting the integration of variable renewable energy (VRE) sources, improving energy security, and offering ancillary services, could directly address SAPP’s operational needs. Special attention was given to the interplay between PHS and VRE across diverse climate zones and weather dependencies in the region.

K&M also applied economic analysis principles and leveraged best practice modeling frameworks to assess the financial viability and value proposition of PHS projects. The final deliverable included clear conclusions on the role and economic viability of PHS within the SAPP markets, along with actionable policy and planning recommendations for member governments to facilitate informed decision-making on PHS development.

 

 

 

 

 

 

 

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