Assignment 2 MEH503

Name: Section: 02
Siti Fatimah Binti Nik Mazlan (ME099417)
Nadzeefah Bt Zamil (ME097924)

Dinorwig 1.7GW pumped storage located in Wales was constructed beginning in 1974 costing
£425 million and took 10 years to complete. The yearly operation cost after construction
completed was £5 million. If the plant runs at 0.3 capacity factor per year and selling
electricity at £0.025/kWh:
1) Calculate the simple payback period and ROI
2) Discuss the local environment, economic and social impact of the project
1.

Power = 1.7 GW
Cost = £425 million
Yearly operation cost = £5 million
Capacity factor = 0.3
Selling electricity = £0.025/kWh

a) Simple payback period:

Revenue per year = £0.025/kWh x 0.3 x 1.7 GW x 365 days x 24 h

= £111.69 million

Cost of Investment
Payback period =
Annual net cash flow

£ 425 million
=
£ 11 1 .69 million−£ 5 million

= 3.984 years
= 4 years

b) Return on Investment (ROI):

Net profit
ROI = x 100
Total investment

£ 11 1 .69 million−£ 5 million

= x 100
£ 425 million
= 25.10 %
2.
The Dinorwig Power Station is a pumped-storage hydroelectric scheme near Dinorwig
in north Wales. Its purpose is not to meet peak loads but as a “Short Term Operating Reserve”,
to provide a fast response to short-term rapid changes in power demand or sudden loss of
power stations. Dinorwig is comprised of 16km of underground tunnels, deep below Elidir
Mountain. Its construction required 1 million tonnes of concrete, 200,000 tonnes of cement
and 4,500 tonnes of steel.
The scheme can supply a maximum power of 1,728-megawatt (2,317,000 hp) and has
a storage capacity of around 9.1-gigawatt-hour (33 TJ). Dinorwig's reversible pump/turbines
are capable of reaching maximum generation in less than 16 seconds. Using off-peak
electricity, the six units are reversed as pumps to transport water from the lower reservoir,
back to Marchlyn Mawr.
The scheme was constructed in the abandoned Dinorwic slate quarry. To preserve the
natural beauty of Snowdonia National Park, the power station itself is located deep inside the
mountain Elidir Fawr, inside tunnels and caverns.
Excess water overflows to Llyn Padarn and is lost from the Reservoir system. Both
Llyn Peris and Llyn Padarn were ancestral homes to the Arctic char, a rare fish in the UK.
When the scheme was commissioned, a fish rescue was undertaken to transfer the char from
Llyn Peris to other local suitable lakes and it is believed that due to the very variable water
levels in Llyn Peris, Arctic char are now absent from the lake.
Dinorwig could store cheap energy produced at night by low marginal cost plant and
then generate during times of peak demand so displacing low efficiency plant during peak
demand periods. This can save a lot of money.
The power station is connected to the National Grid substation at Pentir by 400 kV
cables that are buried for approximately 10 kilometres (6 mi), rather than using transmission
towers or pylons to transmit the electricity across an area of outstanding natural beauty.
The power station is also promoted as a tourist attraction, with visitors able to take a
minibus trip from "Electric Mountain" - the name of its nearby visitor centre - to see the
workings inside the power station; 132,000 people visited the attraction in 2015.
The power station is also promoted as a tourist attraction, with visitors able to take a
minibus trip from "Electric Mountain" - the name of its nearby visitor centre - to see the
workings inside the power station; 132,000 people visited the attraction in 2015.
 Another important feature of Dinorwig is that it has been designed to assist restarting
the National Grid on the occasion of a complete power failure (a black start). It includes diesel
generators and large batteries which would allow the plant to restart even in the event of a
complete shutdown of the grid (Dinorwig is not unique in this respect as some fossil-fuel
plants are also able to self-start). This can as backup plan to avoid the country totally lose
electricity.
The plant runs on average at 74–76% efficiency. It fills an important need in the
system by responding to sudden surges in electricity demand because of its rapid ability to
deliver power on load spikes.