Assessing the Impact of PNIEC Implementation Delays on the Business Models of Pumped Hydro Storage Projects
Jose M. Yusta, Natalia Naval, Lizbeth Tipán-Salazar Department of Electrical Engineering E.I.N.A., University of Zaragoza, Zaragoza (Spain). 2026-06-27

Abstract

This article analyzes the impact of delays in implementing the objectives of the National Integrated Energy and Climate Plan (PNIEC) on the business models of stand-alone reversible pumped storage in Spain. This technology is essential for integrating renewable energies through price arbitrage, taking advantage of market volatility to pump during low-cost hours and turbine during peak hours.

Using a statistical regression model to estimate hourly prices until 2050 and an algorithm for daily selection of optimal pumping and turbining hours for a 165 MW plant, scenarios are evaluated where the PNIEC objectives are achieved in 2030, 2035, or 2040. The results reveal that the delay in renewable deployment reduces the price spread, penalizing the economic performance of the facility by 14% if postponed to 2035 and up to 28% if reached in 2040. Likewise, it is observed that increasing the operating strategy to 7 hours of daily pumping can improve financial performance by up to 46%.

Key words: Pumped Hydro Storage, Energy and Climate Plan, Regression model, Electricity market price

References

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