Technical and Economic Feasibility of Transforming the Leonardo Rodríguez Alcaine Hydroelectric Plant Into Pumped Storage Reservoir in Mexico

This study evaluates the technical and economic feasibility of converting the Leonardo Rodríguez Alcaine Hydroelectric Power Plant in Mexico into a pumped storage system. The problem addressed is the increasing penetration of intermittent renewable energy sources and the resulting need for grid flexibility and large-scale storage. The objective is to determine whether repowering the plant can improve system stability and reduce operational costs. A technical-economic methodology based on the PLEXOS simulation tool is applied, incorporating generation capacity, transmission constraints, market behavior, and environmental externalities. Results indicate that the plant could integrate an additional 556 MW without requiring new transmission infrastructure, while reducing marginal electricity costs and mitigating the “duck curve” effect. Economic analysis shows a positive net present value and a benefit-cost ratio above unity. Additionally, significant environmental benefits are identified, including CO₂ emission reductions and avoided fossil-based generation. The study concludes that pumped storage represents a viable and strategic solution to enhance reliability, support renewable integration, and promote sustainable energy transition in Mexico.