An underground power station is a type of hydroelectric power station constructed by excavating the major components (e.g. machine hall, penstocks, and tailrace) from rock, rather than the more common surface-based construction methods.
Often underground power stations form part of pumped storage hydroelectricity schemes, whose basic function is to level load: they use cheap or surplus off-peak power to pump water from a lower lake to an upper lake, then, during peak periods (when electricity prices are often high), the power station generates power from the water held in the upper lake.
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