Power refinement
In so-called electricity refinement , base load electricity or electricity from supply-dependent renewable energies (both have in common that they have low variable costs ) is converted into higher-quality, demand-oriented electrical energy through intermediate storage.
This can be done, for example, by pumping water up into higher-lying reservoirs from pumped storage power plants through the use of compressed air storage power plants . This water is drained off again through the turbines during power consumption peaks, drives them and the generator produces peak electricity .
Despite the relatively high overall efficiency of around 80% and the price difference between base load electricity and peak electricity, pure electricity refinement as an arbitrage business is not sufficient to finance the construction of a new storage power plant. There are to develop additional sources of revenue, such as participation in the balancing energy market, which in terms of capacity premium paid for the provision of services.