Hydroelectric Dams

Hydroelectric dams with large reservoirs can also be operated to provide peak generation at times of peak demand. Water is stored in the reservoir during periods of low demand and released through the plant when demand is higher. The net effect is the same as pumped storage, but without the pumping loss. Depending on the reservoir capacity the plant can provide daily, weekly, or seasonal load following. Many existing hydroelectric dams are fairly old (for example, the Hoover Dam was built in the 1930s), and their original design predated the newer intermittent power sources such as wind and solar by decades. A hydroelectric dam originally built to provide baseload power will have its generators sized according to the average flow of water into the reservoir. Uprating such a dam with additional generators increases its peak power output capacity, thereby increasing its capacity to operate as a virtual grid energy storage unit.

 The United States Bureau of Reclamation reports an investment cost of $69 per kilowatt capacity to uprate an existing dam,  compared to more than $400 per kilowatt for oil-fired peaking generators. While an uprated hydroelectric dam does not directly store excess energy from other generating units, it behaves equivalently by accumulating its own fuel – incoming river water – during periods of high output from other generating units. Functioning as a virtual grid storage unit in this way, the uprated dam is one of the most efficient forms of energy storage, because it has no pumping losses to fill its reservoir, only increased losses to evaporation and leakage.

A dam which impounds a large reservoir can store and release a correspondingly large amount of energy, by controlling river outflow and raising or lowering its reservoir level a few meters. Limitations do apply to dam operation, their releases are commonly subject to government regulated water rights to limit downstream effect on rivers. For example, there are grid situations where baseload thermal plants, nuclear or wind turbines are already producing excess power at night, dams are still required to release enough water to maintain adequate river levels, whether electricity is generated or not. Conversely there's a limit to peak capacity, which if excessive could cause a river to flood for a few hours each day.