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.