With good static and dynamic benefits, the pumped storage hydropower plants (PSPPs) are the efficient and necessary regulation tool for modern power systems. Compared with developed countries, due to the late development of PSPPs in China, there exist some problems about functions and related policies of PSPPs. In this paper, the development process, influential factors and development trends of PSPPs in other countries were summarized. Then the functions, benefits, and modes of investment and operation were clarified. Suggestions on reasonable investment and operation modes for the development of PSPPs in China were proposed.
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