Utility Dive•about 2 months ago
Kentucky utilities eye 266-MW pumped storage project as demand drives renewed interest
Key Takeaway
The high cost of new, large-scale storage projects like pumped hydro may necessitate direct financial backing from large power consumers, particularly data center hyperscalers, to achieve viability.
AI Summary
- •Kentucky utilities LG&E and KU are studying a 266-MW pumped storage project.
- •The project is estimated to cost approximately $4.9 million/MW, totaling over $1.3 billion.
- •Jefferies analysts suggest the project's high cost makes it unviable without a data center hyperscaler willing to underwrite it.
- •Renewed interest in large-scale storage is driven by increasing demand, highlighting the need for significant capacity additions.
Topics
datacenterfinancingppastorage
Article Content
Two PPL utilities — Louisville Gas and Electric and Kentucky Utilities — are studying the project. But at about $4.9 million/MW, it doesn’t appear viable without a data center hyperscaler willing to pay for it, Jefferies analysts said.