Of course with a lower reservoir, you can go into negative territory instead of "just" taking the plant down to 0.
EDIT: with the one caveat of transmission capacity, which certainly can be an issue.
Prices go negative in the US at times and in Germany more often. That is exactly when something like this would be used: to store that capacity.
The original point was that you do not need to have a reservoir to pump from to take advantage of the fast start/stop capability of a hydro plant: Closing the sluice gates and/or bypassing the turbines is sufficient to reduce supply by the generating capacity of the plant.
Having a reservoir as the potential to significantly increase the reduction in excess supply you can handle, that is true, but the lack of that option does not change the benefit of shutting off generating capacity.
Hydro plants have been used to adjust grid supply for as long as they have existed in this way. Not least because with grid prices adjusting dynamically, as long as the reservoir is not full, most hydro plants yield better economic result if they respond to falling prices by letting the reservoir water levels build back up.
The point is to not turn off generation capacity that we don't control the start of, like wind. Why should we not generate if the wind is blowing at night?
That's the entire point: That hydro plants can act as storage even if there's no lower reservoir to pump from. Which means they're good fast response plants exactly so that types of plants where turning them off wastes potential energy, like wind farms, can keep running.
The original claim I took issue with, was that a hydro plant can't serve this purpose without a second reservoir, which is not true - a second reservoir can be used to increase total effective storage capacity, and to make the plant increase demand rather than just decrease supply, but a hydro plant on itself can improve grid responsiveness, given enough transmission capacity.
> You are taking power off the grid: The power otherwise produced by the hydro plant. > > Of course with a lower reservoir, you can go into negative territory instead of "just" taking the plant down to 0.
In other words, my point from the beginning was that there is - absent transmissions limitations - no conceptual difference in the outcome of stopping a damn and pumping into a reservoir, as I've gone into at great length in the subsequent comments.
At a hydro plant you have multiple options: You can bypass the turbines; you can close the dam, as long as it's not near capacity; if you have a lower reservoir you can close the dam and pump water up to the upper reservoir. All of these help reduce the excess supply, but pumping up does so by increasing demand and reducing supply, and the other two options reduce supply.
You can of course do pumped storage without normally producing electricity too - in places where the only convenient location for a reservoir is not "in line" with a water source with sufficient fall height, you can still pump up to a convenient location, in which case the plant is basically "only" storage.