Site selection for feasibility study of pump-storage hydropower project in the Philippines

Abstract

Pumped-storage hydropower projects (PSP) are a technology for hydroelectric energy storage. It is a design of two water reservoirs at different elevations that can create electricity as water flows from one to the other via a turbine. The PSP system is similar to a huge battery in that it can store and then release energy as needed.

The Philippines is a country with a wide range of elevations due to its island composition. Natural disasters occur frequently, making it challenging to establish any structure. But the PSP is a large building that is also capable of generating a great amount of energy at a significant cost. This research will focus on the preliminary stage of finding sites appropriate for PSP through a remote investigation of two critical conditions: geography and geology.

There are three research areas located throughout the region's islands: Luzon (L), Visayas (V), and Mindanao (M). The result shows only the upper reservoir with natural water and a head of more than 300 m. To analyze PSP, the author uses a Discount Cash Flow Model (DCF model) with a 25-year concession period. The results of this research shows that the net present value is 1,467(L), 756 (V), and 1,696 (M) million USD, the internal rate of return is 22.56% (L), 17.48% (V), and 20.94% (M), and the payback project will last 4 (L), 6 (V), and 4 (M) years. As a result, the project is economically and financially feasible.