Analysis of Compressed Air Energy Storage System and Evaluation of Financial Feasibility—A Case Study ^†

We analyzed the performance and financial feasibility of a compressed air energy storage (CAES) system in a potential region in Miaoli County, Taiwan, with the aquifer in the underground structure. We conducted a performance analysis of the system using the commercial software Flownex 9.0. Initially, a model for the Huntorf case in Germany was built, and its performance was compared with others for validation. The calculation results showed a deviation of about 1% in terms of efficiency, confirming the analytical capabilities and accuracy of the model. After verifying the system performance, the scale of output power was adjusted to 2 MW for initial development and subsequent planning. Then, geological characteristics were analyzed using COMSOL to establish a multiphase flow analysis model. This model evaluated the flow rate and pressure required for the operation of the CAES system. Lastly, a financial analysis was conducted based on the obtained results. The cost for system components was estimated, and the levelized cost of the proposed CAES system was evaluated. A comparison with other energy storage technologies was conducted to assess the financial feasibility of the analyzed CAES system.