Techno – economic study of compressed air energy storage systems for the grid integration of wind power

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Abstract

Integrating variable renewable energy from wind farms into power grids presents challenges for system operation, control and stability due to the intermittent nature of wind power. One of the most promising solutions is the use of Compressed Air Energy Storage (CAES). The main purpose of this paper is to examine the technical and economic potential for use of CAES systems in the grid integration. To carry out this study, two CAES plant configurations: Adiabatic – CAES (A-CAES) and Diabatic - CAES (D-CAES) were modelled and simulated by using the process simulation software ECLIPSE. The nominal compression and power generation of both systems were given at 100MWe and 140MWe respectively. Technical results showed that the overall energy efficiency of the A-CAES was 65.6%, considerably better than that of the D-CAES at 54.2%. However, it could be seen in the economic analysis that the breakeven electricity selling price (BESP) of the A-CAES system was much higher than that of the D-CAES system at €144/MWh and €91/MWh, respectively. In order to compete with large scale fossil fuel power plants, we found that a CO2 taxation scheme (with an assumed CO2-tax of €20/tonne) improved the economic performance of both CAES systems significantly. This advantage is maximised if the CAES systems use low carbon electricity during its compression cycle, either through access to special tariffs at times of low carbon intensity on the grid, or by direct coupling to a clean energy source, for example a 100 MW class wind farm.
LanguageEnglish
JournalInternational Journal of Energy Research
VolumeNA
Early online date8 Aug 2017
DOIs
Publication statusE-pub ahead of print - 8 Aug 2017

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Wind power
Economics
Taxation
Farms
Electricity
Fossil fuel power plants
Carbon
Economic analysis
Compressed air energy storage
Power generation
Energy efficiency
Sales

Keywords

  • Adiabatic compressed air energy storage
  • Diabatic compressed air energy storage
  • Process modelling
  • Capital cost estimation
  • Techno-economic analysis

Cite this

@article{1130dda9f268408781fc2ae9cdf81f64,
title = "Techno – economic study of compressed air energy storage systems for the grid integration of wind power",
abstract = "Integrating variable renewable energy from wind farms into power grids presents challenges for system operation, control and stability due to the intermittent nature of wind power. One of the most promising solutions is the use of Compressed Air Energy Storage (CAES). The main purpose of this paper is to examine the technical and economic potential for use of CAES systems in the grid integration. To carry out this study, two CAES plant configurations: Adiabatic – CAES (A-CAES) and Diabatic - CAES (D-CAES) were modelled and simulated by using the process simulation software ECLIPSE. The nominal compression and power generation of both systems were given at 100MWe and 140MWe respectively. Technical results showed that the overall energy efficiency of the A-CAES was 65.6{\%}, considerably better than that of the D-CAES at 54.2{\%}. However, it could be seen in the economic analysis that the breakeven electricity selling price (BESP) of the A-CAES system was much higher than that of the D-CAES system at €144/MWh and €91/MWh, respectively. In order to compete with large scale fossil fuel power plants, we found that a CO2 taxation scheme (with an assumed CO2-tax of €20/tonne) improved the economic performance of both CAES systems significantly. This advantage is maximised if the CAES systems use low carbon electricity during its compression cycle, either through access to special tariffs at times of low carbon intensity on the grid, or by direct coupling to a clean energy source, for example a 100 MW class wind farm.",
keywords = "Adiabatic compressed air energy storage, Diabatic compressed air energy storage, Process modelling, Capital cost estimation, Techno-economic analysis",
author = "Ye Huang and Patrick Keatley and H.S. Chen and X.J. Zhang and Angela Rolfe and Neil Hewitt",
note = "Reference text: [1] RENEWABLES 2014, GLOBAL STATUS REPORT (2014), http://www.ren21.net [2] Renewable UK, http://www.renewableuk.com/en/renewable-energy/wind-energy/offshore-wind/index.cfm#sthash.mnnrdlcj.dpuf [3] The Guardian, http://www.theguardian.com/environment/2008/oct/21/windpower-renewableenergy1 [4] Sustainable-Ireland, UK to remain top offshore wind power market by 2050, http://www.sustainableireland.co.uk/?p=546 [5] GlobalData-Energy, http://energy.globaldata.com/media-center/press-releases/power-and-resources/uk-to-remain-top-offshore-wind-power-market-by-2025-with-capacity-exceeding-23-gigawatts-says-globaldata [6] UK Offshore Wind: opportunities for trade and investment, June 2015, http://www.greeninvestmentbank.com/media/44638/osw-pitchbook_ukti_june-2015.pdf [7] Wind Energy Statistics, the Irish Wind Energy Association, http://www.iwea.com/windstatistics [8] All Island Generation Capacity Statement 2016 – 2025, http://www.eirgridgroup.com/site-files/library/EirGrid/Generation_Capacity_Statement_20162025_FINAL.pdf [9] P. Georgilakis, Technical challenges associated with the integration of wind power into power systems, Renewable and Sustainable Energy Reviews, April 2008, Volume 12 (3), pages 852-863 [10] S. Rezvani, D. McIlveen-Wright, et al, Comparative analysis of energy options in connection with coal fired integrated gasification combined cycles for an optimised part load operation, Fuel, November 2012, Volume 101, pages 154-160. [11] P. Radgen, Energy storage: From compressed air energy storage to E-mobility, User Forum Power Plant Technology, April 2009, Hannover Messe. [12] The Bethel Energy Centre, http://www.apexcaes.com/bethel-energy-center [13] http://www.gaelectric.ie/energy-storage-projects/project-caes-larne-ni/ [14] https://www.rwe.com/web/cms/mediablob/en/391748/data/364260/1/rwe-power-ag/innovations/Brochure-ADELE.pdf [15] Underground Storage, British Geological Survey, http://www.bgs.ac.uk/downloads/start.cfm?id=1370 [16] Current state and issues concerning Underground Natural Gas Storage. Federal Energy Regulatory Commission, Washington DC, 2004. [17] NYSERDA, Compressed Air Energy Storage Engineering and Economic Study, New York State Energy Research and Development Authority, Albany, NY, 2009. http://www.nyserda.ny.gov/Publications/Research-and-Development-Technical-Reports/Electric-Power-Delivery-Reports.aspx [18] E. Barbour, D. Mignard, Y. L. Ding, Y. L. Li, Adiabatic Compressed Air Energy Storage with packed bed thermal energy storage, Applied Energy, October 2015, Volume 155, Pages 804-815 [19] N. Hartmann, O. Vohringer, C. Kruck and L. Eltrop, Simulation and analysis of different adiabatic Compressed Air Energy Storage plant configurations, Applied Energy, 93 (2012), 541-548 [20] The Commission for Energy Regulation (CER), CER Factsheet on the Single Electricity Market, April 2011, https://www.cer.ie/docs/000262/cer11075.pdf [21] SG. Sundkvist, A. Klang, et al, AZEP Gas Turbine Combined Cycle Power Plants – Thermal Optimisation ad LCA Analysis, 17th, Greenhouse gas control technologies (International conference), November, 2004,Vancouver, Canada. [22] Quarterly Report on European Gas Markets, fourth quarter of 2016, Volume 9, Issue 4, https://ec.europa.eu/energy/sites/ener/files/documents/quarterly_report_on_european_gas_markets_q4_2016.pdf [23] BC. Williams, The development of the ECLIPSE simulator and its application to the techno-economic assessment of clean fossil fuel power generation systems, DPhil thesis, Energy Research Centre, University of Ulster, Coleraine Campus, N.I., 1994. [24] Y. Huang, et al, Hybrid coal-fired power plants with CO2 capture: A technical and economic evaluation based on computational simulation. FUEL (2012), 101, pp. 244-253 [25] Y. Huang, et al, Comparative techno-economic analysis of biomass fuelled combined heat and power for commercial buildings, APPLIED ENERGY (2013), Vol.112, pp 518-525 [26] Compressed Air Energy Storage (CAES), http://www.neuralenergy.info/2014/07/energy-storage.html [27] G. Grazzini, et al, A. Thermodynamic analysis of CAES/TES systems for renewable energy plants, Renewable Energy, 44 (2008) Pages 1998-2006 [28] Electric Power Research Institute, Compressed Air Energy Storage Scoping Study for California, Prepared for the California Energy Commission, Report number CEC-500-2008-069. http://www.energy.ca.gov/2008publications/CEC-500-2008-069/CEC-500-2008-069.PDF [29] H. Safaei, et al, Compressed air energy storage (CAES) with compressors distributed at heat loads to enable waste heat utilisation, APPLIED ENERGY (2013), Vol. 103, Pages 165-179 [30] RWE, ADELE-Adiabatic Compressed Air Energy Storage for Electricity Supply, http://www.slideshare.net/arpit615461/brochure-rwe-ag [31] Northern Innovation Ltd, Technical Investigation into Thermal Oil Technology, March 2010, http://secure.investni.com/static/library/invest-ni/documents/thermal-oil-technology-technical-investigation-report-sd-march-2010.pdf [32] Y. M. Kim and D Favrat, Energy and exergy analysis of a micro-compressed air energy storage and air cycle heating and cooling system. Energy 2010, 35, 213–220. [33] A. Edrisian, H. Samani, A. Sharifan, M. R. Naseh, The New Hybrid Model of Compressed Air for Stable Production of Wind Farms, International Journal of Emerging Technology and Advanced Engineering, Volume 3, Issue 11, November 2013 [34] Facilitating energy storage to allow high penetration of intermittent renewable energy (March 2012), www.store-project.eu [35] O. Ito, Emissions from Coal Fired Power Generation, Workshop on IEA High Efficiency, Low Emissions Coal Technology Roadmap Date: 29 November 2011 Location: New Delhi, https://www.iea.org/media/workshops/2011/cea/Ito.pdf [36] Marcus Budt, Daniel Wolf, et al, A review on Compressed Air Energy Storage: Basic principles, Past Milestones and Recent Developments, Applied Energy 170 (2016) Pages 250-268. [37] A. G. Ter-Gazarian, Energy Storage for Power Systems, Pages 108-119, the Institution of Engineering and Technology, ISBN 978-1-84919-219-4, www.theiet.org [38] R. Madlener, J. Latz, Economics of centralized and decentralized compressed air energy storage for enhanced grid integration of wind power, Applied Energy 101 (2013) 299-309 [39] EPRI-DOE Handbook Supplement of Energy Storage for Grid Connected Wind Generation Applications, EPRI, Palo Alto, CA, and the U.S. Department of Energy, Washington, DC: 2004. 1008703, http://www.sandia.gov/ess/publications/EPRI-DOE{\%}20ESHB{\%}20Wind{\%}20Supplement.pdf [40] BP. McGrail, et al. Techno-economic Performance Evaluation of Compressed Air Energy Storage in the Pacific Northwest, February 2013, http://caes.pnnl.gov/pdf/PNNL-22235.pdf [41] Ridge Energy Storage & Grid Services L.P., The Economic Impact of CAES on Wind in TX, OK, and NM, http://www.ridgeenergystorage.com/re_wind_projects-compressed2005.pdf",
year = "2017",
month = "8",
day = "8",
doi = "10.1002/er.3840",
language = "English",
volume = "NA",
journal = "International Journal of Energy Research",
issn = "0363-907X",

}

TY - JOUR

T1 - Techno – economic study of compressed air energy storage systems for the grid integration of wind power

AU - Huang, Ye

AU - Keatley, Patrick

AU - Chen, H.S.

AU - Zhang, X.J.

AU - Rolfe, Angela

AU - Hewitt, Neil

N1 - Reference text: [1] RENEWABLES 2014, GLOBAL STATUS REPORT (2014), http://www.ren21.net [2] Renewable UK, http://www.renewableuk.com/en/renewable-energy/wind-energy/offshore-wind/index.cfm#sthash.mnnrdlcj.dpuf [3] The Guardian, http://www.theguardian.com/environment/2008/oct/21/windpower-renewableenergy1 [4] Sustainable-Ireland, UK to remain top offshore wind power market by 2050, http://www.sustainableireland.co.uk/?p=546 [5] GlobalData-Energy, http://energy.globaldata.com/media-center/press-releases/power-and-resources/uk-to-remain-top-offshore-wind-power-market-by-2025-with-capacity-exceeding-23-gigawatts-says-globaldata [6] UK Offshore Wind: opportunities for trade and investment, June 2015, http://www.greeninvestmentbank.com/media/44638/osw-pitchbook_ukti_june-2015.pdf [7] Wind Energy Statistics, the Irish Wind Energy Association, http://www.iwea.com/windstatistics [8] All Island Generation Capacity Statement 2016 – 2025, http://www.eirgridgroup.com/site-files/library/EirGrid/Generation_Capacity_Statement_20162025_FINAL.pdf [9] P. Georgilakis, Technical challenges associated with the integration of wind power into power systems, Renewable and Sustainable Energy Reviews, April 2008, Volume 12 (3), pages 852-863 [10] S. Rezvani, D. McIlveen-Wright, et al, Comparative analysis of energy options in connection with coal fired integrated gasification combined cycles for an optimised part load operation, Fuel, November 2012, Volume 101, pages 154-160. [11] P. Radgen, Energy storage: From compressed air energy storage to E-mobility, User Forum Power Plant Technology, April 2009, Hannover Messe. [12] The Bethel Energy Centre, http://www.apexcaes.com/bethel-energy-center [13] http://www.gaelectric.ie/energy-storage-projects/project-caes-larne-ni/ [14] https://www.rwe.com/web/cms/mediablob/en/391748/data/364260/1/rwe-power-ag/innovations/Brochure-ADELE.pdf [15] Underground Storage, British Geological Survey, http://www.bgs.ac.uk/downloads/start.cfm?id=1370 [16] Current state and issues concerning Underground Natural Gas Storage. Federal Energy Regulatory Commission, Washington DC, 2004. [17] NYSERDA, Compressed Air Energy Storage Engineering and Economic Study, New York State Energy Research and Development Authority, Albany, NY, 2009. http://www.nyserda.ny.gov/Publications/Research-and-Development-Technical-Reports/Electric-Power-Delivery-Reports.aspx [18] E. Barbour, D. Mignard, Y. L. Ding, Y. L. Li, Adiabatic Compressed Air Energy Storage with packed bed thermal energy storage, Applied Energy, October 2015, Volume 155, Pages 804-815 [19] N. Hartmann, O. Vohringer, C. Kruck and L. Eltrop, Simulation and analysis of different adiabatic Compressed Air Energy Storage plant configurations, Applied Energy, 93 (2012), 541-548 [20] The Commission for Energy Regulation (CER), CER Factsheet on the Single Electricity Market, April 2011, https://www.cer.ie/docs/000262/cer11075.pdf [21] SG. Sundkvist, A. Klang, et al, AZEP Gas Turbine Combined Cycle Power Plants – Thermal Optimisation ad LCA Analysis, 17th, Greenhouse gas control technologies (International conference), November, 2004,Vancouver, Canada. [22] Quarterly Report on European Gas Markets, fourth quarter of 2016, Volume 9, Issue 4, https://ec.europa.eu/energy/sites/ener/files/documents/quarterly_report_on_european_gas_markets_q4_2016.pdf [23] BC. Williams, The development of the ECLIPSE simulator and its application to the techno-economic assessment of clean fossil fuel power generation systems, DPhil thesis, Energy Research Centre, University of Ulster, Coleraine Campus, N.I., 1994. [24] Y. Huang, et al, Hybrid coal-fired power plants with CO2 capture: A technical and economic evaluation based on computational simulation. FUEL (2012), 101, pp. 244-253 [25] Y. Huang, et al, Comparative techno-economic analysis of biomass fuelled combined heat and power for commercial buildings, APPLIED ENERGY (2013), Vol.112, pp 518-525 [26] Compressed Air Energy Storage (CAES), http://www.neuralenergy.info/2014/07/energy-storage.html [27] G. Grazzini, et al, A. Thermodynamic analysis of CAES/TES systems for renewable energy plants, Renewable Energy, 44 (2008) Pages 1998-2006 [28] Electric Power Research Institute, Compressed Air Energy Storage Scoping Study for California, Prepared for the California Energy Commission, Report number CEC-500-2008-069. http://www.energy.ca.gov/2008publications/CEC-500-2008-069/CEC-500-2008-069.PDF [29] H. Safaei, et al, Compressed air energy storage (CAES) with compressors distributed at heat loads to enable waste heat utilisation, APPLIED ENERGY (2013), Vol. 103, Pages 165-179 [30] RWE, ADELE-Adiabatic Compressed Air Energy Storage for Electricity Supply, http://www.slideshare.net/arpit615461/brochure-rwe-ag [31] Northern Innovation Ltd, Technical Investigation into Thermal Oil Technology, March 2010, http://secure.investni.com/static/library/invest-ni/documents/thermal-oil-technology-technical-investigation-report-sd-march-2010.pdf [32] Y. M. Kim and D Favrat, Energy and exergy analysis of a micro-compressed air energy storage and air cycle heating and cooling system. Energy 2010, 35, 213–220. [33] A. Edrisian, H. Samani, A. Sharifan, M. R. Naseh, The New Hybrid Model of Compressed Air for Stable Production of Wind Farms, International Journal of Emerging Technology and Advanced Engineering, Volume 3, Issue 11, November 2013 [34] Facilitating energy storage to allow high penetration of intermittent renewable energy (March 2012), www.store-project.eu [35] O. Ito, Emissions from Coal Fired Power Generation, Workshop on IEA High Efficiency, Low Emissions Coal Technology Roadmap Date: 29 November 2011 Location: New Delhi, https://www.iea.org/media/workshops/2011/cea/Ito.pdf [36] Marcus Budt, Daniel Wolf, et al, A review on Compressed Air Energy Storage: Basic principles, Past Milestones and Recent Developments, Applied Energy 170 (2016) Pages 250-268. [37] A. G. Ter-Gazarian, Energy Storage for Power Systems, Pages 108-119, the Institution of Engineering and Technology, ISBN 978-1-84919-219-4, www.theiet.org [38] R. Madlener, J. Latz, Economics of centralized and decentralized compressed air energy storage for enhanced grid integration of wind power, Applied Energy 101 (2013) 299-309 [39] EPRI-DOE Handbook Supplement of Energy Storage for Grid Connected Wind Generation Applications, EPRI, Palo Alto, CA, and the U.S. Department of Energy, Washington, DC: 2004. 1008703, http://www.sandia.gov/ess/publications/EPRI-DOE%20ESHB%20Wind%20Supplement.pdf [40] BP. McGrail, et al. Techno-economic Performance Evaluation of Compressed Air Energy Storage in the Pacific Northwest, February 2013, http://caes.pnnl.gov/pdf/PNNL-22235.pdf [41] Ridge Energy Storage & Grid Services L.P., The Economic Impact of CAES on Wind in TX, OK, and NM, http://www.ridgeenergystorage.com/re_wind_projects-compressed2005.pdf

PY - 2017/8/8

Y1 - 2017/8/8

N2 - Integrating variable renewable energy from wind farms into power grids presents challenges for system operation, control and stability due to the intermittent nature of wind power. One of the most promising solutions is the use of Compressed Air Energy Storage (CAES). The main purpose of this paper is to examine the technical and economic potential for use of CAES systems in the grid integration. To carry out this study, two CAES plant configurations: Adiabatic – CAES (A-CAES) and Diabatic - CAES (D-CAES) were modelled and simulated by using the process simulation software ECLIPSE. The nominal compression and power generation of both systems were given at 100MWe and 140MWe respectively. Technical results showed that the overall energy efficiency of the A-CAES was 65.6%, considerably better than that of the D-CAES at 54.2%. However, it could be seen in the economic analysis that the breakeven electricity selling price (BESP) of the A-CAES system was much higher than that of the D-CAES system at €144/MWh and €91/MWh, respectively. In order to compete with large scale fossil fuel power plants, we found that a CO2 taxation scheme (with an assumed CO2-tax of €20/tonne) improved the economic performance of both CAES systems significantly. This advantage is maximised if the CAES systems use low carbon electricity during its compression cycle, either through access to special tariffs at times of low carbon intensity on the grid, or by direct coupling to a clean energy source, for example a 100 MW class wind farm.

AB - Integrating variable renewable energy from wind farms into power grids presents challenges for system operation, control and stability due to the intermittent nature of wind power. One of the most promising solutions is the use of Compressed Air Energy Storage (CAES). The main purpose of this paper is to examine the technical and economic potential for use of CAES systems in the grid integration. To carry out this study, two CAES plant configurations: Adiabatic – CAES (A-CAES) and Diabatic - CAES (D-CAES) were modelled and simulated by using the process simulation software ECLIPSE. The nominal compression and power generation of both systems were given at 100MWe and 140MWe respectively. Technical results showed that the overall energy efficiency of the A-CAES was 65.6%, considerably better than that of the D-CAES at 54.2%. However, it could be seen in the economic analysis that the breakeven electricity selling price (BESP) of the A-CAES system was much higher than that of the D-CAES system at €144/MWh and €91/MWh, respectively. In order to compete with large scale fossil fuel power plants, we found that a CO2 taxation scheme (with an assumed CO2-tax of €20/tonne) improved the economic performance of both CAES systems significantly. This advantage is maximised if the CAES systems use low carbon electricity during its compression cycle, either through access to special tariffs at times of low carbon intensity on the grid, or by direct coupling to a clean energy source, for example a 100 MW class wind farm.

KW - Adiabatic compressed air energy storage

KW - Diabatic compressed air energy storage

KW - Process modelling

KW - Capital cost estimation

KW - Techno-economic analysis

U2 - 10.1002/er.3840

DO - 10.1002/er.3840

M3 - Article

VL - NA

JO - International Journal of Energy Research

T2 - International Journal of Energy Research

JF - International Journal of Energy Research

SN - 0363-907X

ER -