Next Article in Journal
Torsional Stiffness Effects on the Dynamic Stability of a Horizontal Axis Wind Turbine Blade
Previous Article in Journal
On the Feasibility of Using Poles Computed from Frequency Domain Spectroscopy to Assess Oil Impregnated Paper Insulation Conditions
Energies 2013, 6(4), 2221-2241; doi:10.3390/en6042221

Economic Modeling of Compressed Air Energy Storage

1,* , 2
, 3
 and 1
Received: 24 January 2013 / Revised: 26 February 2013 / Accepted: 21 March 2013 / Published: 18 April 2013
Download PDF [472 KB, updated 17 March 2015; original version uploaded 17 March 2015]
Abstract: Due to the variable nature of wind resources, the increasing penetration level of wind power will have a significant impact on the operation and planning of the electric power system. Energy storage systems are considered an effective way to compensate for the variability of wind generation. This paper presents a detailed production cost simulation model to evaluate the economic value of compressed air energy storage (CAES) in systems with large-scale wind power generation. The co-optimization of energy and ancillary services markets is implemented in order to analyze the impacts of CAES, not only on energy supply, but also on system operating reserves. Both hourly and 5-minute simulations are considered to capture the economic performance of CAES in the day-ahead (DA) and real-time (RT) markets. The generalized network flow formulation is used to model the characteristics of CAES in detail. The proposed model is applied on a modified IEEE 24-bus reliability test system. The numerical example shows that besides the economic benefits gained through energy arbitrage in the DA market, CAES can also generate significant profits by providing reserves, compensating for wind forecast errors and intra-hour fluctuation, and participating in the RT market.
Keywords: co-optimization; compressed air energy storage; economic dispatch; wind energy; unit commitment co-optimization; compressed air energy storage; economic dispatch; wind energy; unit commitment
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Export to BibTeX |

MDPI and ACS Style

Gu, Y.; McCalley, J.; Ni, M.; Bo, R. Economic Modeling of Compressed Air Energy Storage. Energies 2013, 6, 2221-2241.

AMA Style

Gu Y, McCalley J, Ni M, Bo R. Economic Modeling of Compressed Air Energy Storage. Energies. 2013; 6(4):2221-2241.

Chicago/Turabian Style

Gu, Yang; McCalley, James; Ni, Ming; Bo, Rui. 2013. "Economic Modeling of Compressed Air Energy Storage." Energies 6, no. 4: 2221-2241.

Energies EISSN 1996-1073 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert