Societal valuation of pumped storage hydropower for renewable integration in South Korea: A contingent valuation-based assessment

This study estimates South Korean households’ willingness to pay (WTP) for the expansion of pumped storage hydropower (PSH) as a long-duration energy storage option that can support a renewable-based power system. Using contingent valuation with a nationally representative sample of 1,000 households, the study applies a one-and-one-half-bound spike model to properly account for zero WTP and protest responses. The average household WTP for PSH expansion is estimated at KRW 2,615 (USD 1.88) per month, indicating sizeable social support for additional electricity charges earmarked for PSH investment. Substantial heterogeneity is observed across socio-demographic and perceptual segments, suggesting that income, education, metropolitan residence, and prior awareness of PSH are associated with higher WTP. The findings complement techno-economic and grid simulation studies by providing a societal value metric that can be integrated into system planning and market design assessments for long-duration storage options. Policy implications relate to the design of socially acceptable funding mechanisms, the role of public communication in shaping support for long-duration storage, and future research needs to link WTP estimates with detailed grid and market modelling.