Finding effective and affordable energy storage technologies has become more important as renewable energy sources gain prominence. For storing extra energy produced by renewable sources like solar and wind, compressed air energy storage (CAES) has emerged as a potential method. A least-cost model for CAES is discussed in a recent paper by Electric Power Systems Research published in ScienceDirect, offering light on the possibility of this technology as a sustainable energy storage solution.
In order to account for the fluctuation of wind and solar-based power systems, Stanford University researchers have developed a model to determine how much-compressed air storage could be required for the thorough decarbonisation of power systems. The model was used to examine the energy system in California, and they discovered that compressed air might be quite competitive in terms of cost per kilowatt-hour. This analysis was conducted utilising a modest macro energy model with hourly weather data and real-world historical demand.
How CAES work
CAES works by compressing air using excess energy and storing it in underground caverns or above-ground tanks. When electricity demand increases, the compressed air is released, driving a turbine and generating electricity. CAES has several advantages, including high efficiency, long-duration storage capabilities, and the ability to utilise existing infrastructure such as natural gas pipelines or abandoned mines.
The needed CAES capacity in the least-expensive case, with no extra wind and solar power generation, is 3.71 TWh. A stringent net-zero curtailment requirement would increase the amount of storage needed by 3.2% (3.83TWh), and the cost of power would rise by 9.8%. However, as more solar and wind energy is produced than is needed, the necessary CAES capacity lowers.
In the event of a twice increase in the wind and solar potential, the necessary CAES capacity with strict zero curtailments would be 19.2% lower (3.10TWh), and the associated cost would fall by up to 29.7%. The study also showed that the amount of energy storage needed for a profound decarbonisation depends significantly on the type of renewable energy mix (wind, solar, or both). The results show that extra wind and solar energy production can be leveraged to greatly reduce the needed storage for a fully renewable power system at a lower cost.
The important factor and advantages of CAES
An important factor in the least-cost model was the utilisation of the stored energy. The researchers found that using the stored energy for multiple purposes, such as electricity generation and ancillary services, could further improve the economic viability of CAES. This multi-purpose utilisation approach could provide additional revenue streams and enhance the overall financial feasibility of CAES projects.
The study also highlights the multi-purpose utilisation of CAES as a crucial factor in optimising its cost-effectiveness. CAES can provide various services beyond energy storage, such as grid stabilisation, frequency regulation, and peak demand management. By utilising CAES for multiple purposes, the overall revenue streams can be diversified, and the cost-effectiveness of CAES systems can be enhanced. This multi-purpose utilisation approach can provide additional revenue streams to support the economic viability of CAES projects, making them more attractive for investors and stakeholders.
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Challenges facing CAES
The researchers acknowledge that there are still challenges to be addressed in implementing CAES, such as environmental impact assessment, regulatory frameworks, and public acceptance. However, the least-cost model presented in this study offers a valuable tool for policymakers, investors, and energy developers to assess the economic viability of CAES projects and make informed decisions.
The study also underscores the importance of financing mechanisms in optimising the cost-effectiveness of CAES systems. The high capital costs associated with CAES can be a significant barrier to its widespread deployment. However, the least-cost model for CAES considers different financing mechanisms, such as debt financing, equity financing, and government incentives, to determine the optimal financial structure for CAES projects. This approach helps mitigate the financial risks associated with CAES and makes it a more attractive investment option for project developers and investors.
Visit our page to learn more about air compression used in the world’s largest non-hydro energy storage system and compressed air storage could boost U.S. renewable energy uptake.
Significant implications and contributions for the renewable energy industry
The least-cost model for compressed air energy storage (CAES) presented in the recent study offers valuable insights into optimising the design and operation of CAES systems. By considering repurposing existing infrastructure, local energy demand patterns, multi-purpose utilisation, and financing mechanisms, the study provides a comprehensive approach to evaluating the cost-effectiveness of CAES as an energy storage solution. The findings of the study have significant implications for the renewable energy industry, as CAES has the potential to play a crucial role in supporting the integration of renewable energy sources into the grid and accelerating the transition to a low-carbon economy. However, further research, development, and effective policy and regulatory frameworks are needed to address the challenges associated with CAES and unlock its full potential as a viable and sustainable energy storage option. With continued efforts in advancing CAES technology and implementation, it can contribute to a more resilient, reliable, and sustainable energy future.
Source&Images: ScienceDirect’-Electric Power Systems Research, Stanford University
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