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Jack Devanney's avatar

Depends on where you are. The Swiss Nant de Drance project took advantage of two existing reservoirs, separated by 425 m vertical. Cost over 2 billion dollars for 20 GWh, about $104/kWh. And if you need the 900 MW for more than 22 hours, you're screwed. That's if you have ideal topography and the dam is already there. You won't find any mountains in northern Germany. In fact, you will find very few hills. For almost everywhere, a bit of gas turbine is the way to go, economically and environmentally.

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Jack Devanney's avatar

The GKG model assumes that the hourly demand must be met. So yes that last bit is expensive, and you can imagine load shedding schemes. But the impact on the overall cost of electricity is small. Please see Low CO2 electricity: the options for Germany at gordianknotbook.com. And the OCGT perform two other important functions. They handle unplanned outages and unexpected load spikes.

The GKG model assumes perfect foresight. In the real world, we do not have that luxury. Any decent grid needs reserve capacity which by definition means it is almost never used.

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