Baseload electricity from wind via compressed air energy storage (CAES)

This study investigates two methods of transforming intermittent wind electricity into firm baseload capacity: (1) using electricity from natural gas combined-cycle (NGCC) power plants and (2) using electricity from compressed air energy storage (CAES) power plants. The two wind models are compared in terms of capital and electricity costs, CO₂ emissions, and fuel consumption rates. The findings indicate that the combination of wind and NGCC power plants is the lowest-cost method of transforming wind electricity into firm baseload capacity power supply at current natural gas prices (∼$6/GJ). However, the electricity supplied by wind and CAES power plants becomes economically competitive when the cost of natural gas for electric producers is $10.55/GJ or greater. In addition, the Wind-CAES system has the lowest CO₂ emissions (93% and 71% lower than pulverized coal power plants and Wind-NGCC, respectively) and the lowest fuel consumption rates (9 and 4 times lower than pulverized coal power plants and Wind-NGCC, respectively). As such, the large-scale introduction of Wind-CAES systems in the U.S. appears to be the prudent long-term choice once natural gas price volatility, costs, and climate impacts are all considered.     

Economics of compressed air energy storage to integrate wind power: A case study in ERCOT

Compressed air energy storage (CAES) could be paired with a wind farm to provide firm, dispatchable baseload power, or serve as a peaking plant and capture upswings in electricity prices. We present a firm-level engineering-economic analysis of a wind/CAES system with a wind farm in central Texas, load in either Dallas or Houston, and a CAES plant whose location is profit-optimized. With 2008 hourly prices and load in Houston, the economically optimal CAES expander capacity is unrealistically large – 24 GW – and dispatches for only a few hours per week when prices are highest; a price cap and capacity payment likewise results in a large (17 GW) profit-maximizing CAES expander. Under all other scenarios considered the CAES plant is unprofitable. Using 2008 data, a baseload wind/CAES system is less profitable than a natural gas combined cycle (NGCC) plant at carbon prices less than $56/tCO₂ ($15/MMBTU gas) to $230/tCO₂ ($5/MMBTU gas). Entering regulation markets raises profit only slightly. Social benefits of CAES paired with wind include avoided construction of new generation capacity, improved air quality during peak times, and increased economic surplus, but may not outweigh the private cost of the CAES system nor justify a subsidy.     

Improving the technical, environmental and social performance of wind energy systems using biomass-based energy storage

A completely renewable baseload electricity generation system is proposed by combining wind energy, compressed air energy storage, and biomass gasification. This system can eliminate problems associated with wind intermittency and provide a source of electrical energy functionally equivalent to a large fossil or nuclear power plant. Compressed air energy storage (CAES) can be economically deployed in the Midwestern US, an area with significant low-cost wind resources. CAES systems require a combustible fuel, typically natural gas, which results in fuel price risk and greenhouse gas emissions. Replacing natural gas with synfuel derived from biomass gasification eliminates the use of fossil fuels, virtually eliminating net CO₂ emissions from the system. In addition, by deriving energy completely from farm sources, this type of system may reduce some opposition to long distance transmission lines in rural areas, which may be an obstacle to large-scale wind deployment.     

Hydrogen production from wind energy in Western Canada for upgrading bitumen from oil sands

Hydrogen is produced via steam methane reforming (SMR) for bitumen upgrading which results in significant greenhouse gas (GHG) emissions. Wind energy based hydrogen can reduce the GHG footprint of the bitumen upgrading industry. This paper is aimed at developing a detailed data-intensive techno-economic model for assessment of hydrogen production from wind energy via the electrolysis of water. The proposed wind/hydrogen plant is based on an expansion of an existing wind farm with unit wind turbine size of 1.8 MW and with a dual functionality of hydrogen production and electricity generation. An electrolyser size of 240 kW (50 Nm³ H₂/h) and 360 kW (90 Nm³ H₂/h) proved to be the optimal sizes for constant and variable flow rate electrolysers, respectively. The electrolyser sizes aforementioned yielded a minimum hydrogen production price at base case conditions of $10.15/kg H₂ and $7.55/kg H₂. The inclusion of a Feed-in-Tariff (FIT) of $0.13/kWh renders the production price of hydrogen equal to SMR i.e. $0.96/kg H_2, with an internal rate of return (IRR) of 24%. The minimum hydrogen delivery cost was $4.96/kg H₂ at base case conditions. The life cycle CO₂ emissions is 6.35 kg CO₂/kg H₂ including hydrogen delivery to the upgrader via compressed gas trucks.     

CO2 mitigation costs for new renewable energy capacity in the Mexican electricity sector using renewable energies

Carbon dioxide mitigation costs for the Mexican power sector are calculated in order to compare the business as usual (BAU) scenario, based on natural gas capacity growth, to a transition scenario where electricity generation growth using natural gas after 2007 is replaced by renewable energies (solar, wind, hydro and biomass). The mitigation costs are obtained using the following parameters: natural gas price, discount rate and technological progress. The latter is expressed in terms of the anticipated decrease in capital costs, as reported in electricity generation technological literature. Our results show that when technological progress is considered, CO₂ mitigation costs decrease rapidly from 14 $/tCO₂ (in this paper $ express 1997 US dollars and t means metric tons) to zero when the price of natural gas nears 2.68 $/GJ, (for some readers, it can be useful to know that 1.0 US$1997/GJ is 1.19 US$2001/MMBTU) which is almost the same as the 2002 price. This means that for middle natural gas prices a “no regrets” situation can be achieved. Our results also show that for prices higher than 2.80 $/GJ, the incorporation of the technological progress parameter transforms the transition scenario into a “no regrets” scenario for all the discount rate values considered in this study.     

The value of compressed air energy storage with wind in transmission-constrained electric power systems

In this work, we examine the potential advantages of co-locating wind and energy storage to increase transmission utilization and decrease transmission costs. Co-location of wind and storage decreases transmission requirements, but also decreases the economic value of energy storage compared to locating energy storage at the load. This represents a tradeoff which we examine to estimate the transmission costs required to justify moving storage from load-sited to wind-sited in three different locations in the United States. We examined compressed air energy storage (CAES) in three “wind by wire” scenarios with a variety of transmission and CAES sizes relative to a given amount of wind. In the sites and years evaluated, the optimal amount of transmission ranges from 60% to 100% of the wind farm rating, with the optimal amount of CAES equal to 0–35% of the wind farm rating, depending heavily on wind resource, value of electricity in the local market, and the cost of natural gas.     

Vision 2023: Feasibility analysis of Turkey's renewable energy projection

Electricity consumption of Turkey at the year 2023 is estimated to be around 530,000 GWh. Turkey plans to supply 30% or 160,000 GWh of this demand from renewable energy sources according to the recently avowed government agenda Vision 2023. However, the current installed renewable energy capacity is around 60,000 GWh. Detailed literature analysis showed that only wind and solar energy potential in Turkey can solely supply this demand. In this study, two different scenarios were generated to analyse the cost and environmental impacts of supplying this demand. Scenario 1, which is derived from the official Vision 2023 targets, suggests supplying this demand from wind, solar, geothermal energy and hydropower. The total projected cost based on Scenario 1 is estimated to be $31.000 billion and annual greenhouse gas emissions of 1.05 million tonnes of CO₂ equivalent. According to Scenario 2 or the contrary setup it is assumed that the required demand gap could not be supplied from new renewable energy investments but equally from coal and natural gas. The projected cost is estimated to be around $8.000 billion and annual greenhouse gas emissions at appalling 71.30 million tonnes of CO₂ equivalent. Assuming carbon tax at the year 2023 to be $50 per tonne of CO₂ emitted, supplying the demand from renewable energy sources according to Scenario 1 would generate savings worth nearly $2.175 billion from environmental taxes annually. Thus, making the payback time of the renewable energy investments less than 15 years.     

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

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, 2 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 100 and 140 MWe, 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.     

The feasibility of renewable energies at an off-grid community in Canada

Three renewable energy technologies (RETs) were analyzed for their feasibility for a small off-grid research facility dependent on diesel for power and propane for heat. Presently, the electrical load for this facility is 115 kW but a demand side management (DSM) energy audit revealed that 15–20% reduction was possible. Downsizing RETs and diesel engines by 15 kW to 100 kW reduces capital costs by $27 000 for biomass, $49 500 for wind and $136 500 for solar.The RET Screen International 4.0^® model compared the economical and environmental costs of generating 100 kW of electricity for three RETs compared to the current diesel engine (0 cost) and a replacement ($160/kW) diesel equipment. At all costs from $0.80 to $2.00/l, biomass combined heat and power (CHP) was the most competitive. At $0.80 per liter, biomass’ payback period was 4.1 years with a capital cost of $1800/kW compared to wind's 6.1 years due to its higher initial cost of $3300/kW and solar's 13.5 years due to its high initial cost of $9100/kW. A biomass system would reduce annual energy costs by $63 729 per year, and mitigate GHG emissions by over 98% to 10 t CO₂ from 507 t CO₂. Diesel price increases to $1.20 or $2.00/l will decrease the payback period in years dramatically to 1.8 and 0.9 for CHP, 3.6 and 1.8 for wind, and 6.7 and 3.2 years for solar, respectively.     

The value of compressed air energy storage in energy and reserve markets

Storage devices can provide several grid services, however it is challenging to quantify the value of providing several services and to optimally allocate storage resources to maximize value. We develop a co-optimized Compressed Air Energy Storage (CAES) dispatch model to characterize the value of providing operating reserves in addition to energy arbitrage in several U.S. markets. We use the model to: (1) quantify the added value of providing operating reserves in addition to energy arbitrage; (2) evaluate the dynamic nature of optimally allocating storage resources into energy and reserve markets; and (3) quantify the sensitivity of CAES net revenues to several design and performance parameters. We find that conventional CAES systems could earn an additional $23 ± 10/kW-yr by providing operating reserves, and adiabatic CAES systems could earn an additional $28 ± 13/kW-yr. We find that arbitrage-only revenues are unlikely to support a CAES investment in most market locations, but the addition of reserve revenues could support a conventional CAES investment in several markets. Adiabatic CAES revenues are not likely to support an investment in most regions studied. Modifying CAES design and performance parameters primarily impacts arbitrage revenues, and optimizing CAES design will be nearly independent of dispatch strategy.     

Economic evaluation of the dual mode CAES solution for increased wind energy contribution in autonomous island networks

Wind parks operating in autonomous island grids, such as those encountered in the Aegean Archipelago, face considerable wind energy curtailments, owed to the inability of local electricity networks to absorb the entire wind energy production. On the other hand, plans promoting the natural gas-based electricity generation in big islands (such as Crete) question the future of wind energy. To recover wind energy curtailments and benefit from the introduction of natural gas, the adoption of compressed air energy storage (CAES) systems suggests an appreciable energy solution. Furthermore, to improve the economic performance of the proposed system, it is decided that guaranteed energy amounts should be delivered to the local grid during peak demand periods. In an effort to obtain favourable negotiation conditions – for the selling price of energy delivered – and also improve the economic performance of the system, a dual mode CAES operation is currently examined. Proceeding to the economic evaluation of dual mode CAES configurations that ensure maximum wind energy recovery, the feasibility of the proposed system may be validated. Lower electricity production costs and considerable reduction of fuel consumption achieved – in comparison with the requirements of conventional peak demand power units – illustrate the system's advantages.     

Blending blue hydrogen with natural gas for direct consumption: Examining the effect of hydrogen concentration on transportation and well-to-combustion greenhouse gas emissions

Jurisdictions are looking into mixing hydrogen into the natural gas (NG) system to reduce greenhouse gas (GHG) emissions. Earlier studies have focused on well-to-wheel analysis of H₂ fuel cell vehicles, using high-level estimates for transportation-based emissions. There is limited research on transportation emissions of hythane, a blend of H₂ and NG used for combustion. An in-depth analysis of the pipeline transportation system was performed for hythane and includes sensitivity and uncertainty analyses. When hythane with 15% H₂ is used, transportation GHG emissions (gCO2eq/GJ) increase by 8%, combustion GHG emissions (gCO2eq/GJ) decrease by 5%, and pipeline energy capacity (GJ/hr) decreases by 11% for 50–100 million m³/d pipelines. Well-to-combustion (WTC) emissions increase by 2.0% without CCS, stay the same with a 41% CCS rate, decrease by 2.8% for the 100% CCS scenario, and decrease by 3.6% in the optimal CO₂-free scenario. While hythane contains 15% H₂ by volume only 5% of the gas’ energy comes from H₂, limiting its GHG benefit.     

Production of hydrogen for export from wind and solar energy,natural gas,and coal in Australia

Hydrogen production for export to Japan and Korea is increasingly popular in Australia. The theoretically possible paths include the use of the excess wind and solar energy supply to the grid to produce hydrogen from natural gas or coal. As a contribution to this debate, here I discuss the present contribution of wind and solar to the electricity grid, how this contribution might be expanded to make a grid wind and solar only, what is the energy storage needed to permit this supply, and what is the ratio of domestic total primary energy supply to electricity use. These factors are required to determine the likeliness of producing hydrogen for export. The wind and solar energy capacity, presently at 6.7 and 11.4 GW, have to increase almost 8 times up to values of 53 and 90 GW respectively to support a wind and solar energy only electricity grid for the southeast states only. Additionally, it is necessary to build-up energy storage of actual power >50 GW and stored energy >3000 GW h to stabilize the grid. If the other states and territories are considered, and also the total primary energy supply (TPES) rather than just electricity, the wind and solar capacity must be increased of a further 6–8 times. It is concluded that it is extremely unlikely that hydrogen for export could be produced from the splitting of the water molecule by using excess wind and solar energy, and it is very unlikely that wind and solar may fully cover the local TPES needs. The most likely scenario is production hydrogen via syngas from either natural gas or coal. Production from natural gas and coal needs further development of techniques, to include CO₂ capture, a way to reuse or store CO₂, and finally, the better energy efficiency of the conversion processes. There are several challenges for using natural gas or coal to produce hydrogen with near-zero greenhouse gas emissions. Carbon capture, utilization, and storage technologies that ensure no CO₂ is released in the production process, and new technologies to separate the oxygen from the air, and in case of natural gas, the water, and the CO₂ from the combustion products, are urgently needed to make sense of the fossil fuel hydrogen production. There is no benefit from producing hydrogen from fossil fuels without addressing the CO₂ issue, as well as the fuel energy penalty issue during conversion, that is simply translating in a net loss of fuel energy with the same CO₂ emission.     

Thermo-economic comparative analysis of solar-assisted and carbon capture integrated conventional cogeneration plant of power and process steam

A thermo-economic comparative analysis of steam production using a solar-assisted cogeneration (SACG) and a conventional cogeneration plant (CCG) with and without carbon capture systems has been conducted. The plants considered to produce electricity and process steam of 500 ton/h. Several parametric studies were carried out on the effect of natural gas price, steam quality, gas turbine capacity and solar multiples (SMs) on the Levelized cost of steam (LCS). Results show that in a CCG plant that comprises a 20 MWe gas turbine, the LCS is $8.11/ton of steam and $3.61/ton of steam from a plant with 100 MWe gas turbine capacity for a natural gas price of $3/GJ. The cost analysis of SACG plant with SM of 0.1 shows that 28% of the total annualized costs are solar system related while it contributed only about 9.17% of the annual steam generation. An increase in SM from 0.1 to 0.9 increases the CO₂ avoidance from 61 to 262 ktons/annum for the SACG plant with 20 MWe gas turbine. CCG plants with CO₂ capture technologies were found to have lower LCS in comparison with that of SACG plant. The impact of carbon credit implementation on the LCS has been also investigated and reported in this article.     

Optimal operation of an integrated energy system including fossil fuel power generation, CO2 capture and wind

This study considers the optimization of operations for an integrated fossil-renewable energy system with CO₂ capture. The system treated consists of a coal-fired power station, a temperature-swing absorption CO₂ capture facility powered by a natural gas combustion turbine, and wind generation. System components are represented in a modular fashion using energy and mass balances. Optimization is applied to determine hourly system dispatch to maximize operating profit given energy prices and wind generation data. A CO₂ emission constraint, modeled after a California law, is enforced. Idealized and realistic scenarios are considered, along with several different system specifications. For a year of operation, simulated using available wind and energy price data, operating profit for optimized operation is shown to be approximately 20% greater than profit using a heuristic procedure. The benefit from optimization is positively correlated with electricity price variability and mean wind generation. The impact of different component specifications and different CO₂ absorption solvents on the optimal operation of the energy system is also assessed. In total, this study demonstrates that the effective operating cost of an integrated energy system operating under a CO₂ emission constraint can be substantially reduced via optimal flexible operation.     

Energy conservation on Nova Scotia farms: Baseline energy data

Direct energy use is a small but essential component of the farm greenhouse gas (GHG) budget. Improvements in energy efficiency and renewable energy can help reduce farm operating costs, improve air quality and reduce GHG emission levels. Energy conservation is especially important in Nova Scotia (NS), Canada, where fossil fuels, particularly coal, remain the primary source of electrical generation. Responses from mail surveys were used to establish baseline data on a cross-section of NS farms with respect to direct energy costs and usage to demonstrate differences in farm type and size. A 32% (N=224) response rate was achieved. Based on this survey, the average energy bill for a NS farm in 2004 was $11,228, with most (61.7%) of their energy cost attributable to the purchase of petroleum products. Almost all farmers (96.4%) indicated that their energy cost was a primary concern. Farmers identified the operation of vehicles and mobile equipment, as well as lighting and heating as having the greatest energy requirements in their operations. Energy usage varied with farm type and size. NS farms consumed 1.2 petajoules of energy equivalent to 127 kilotonnes of CO₂ with 52.7% of emissions from electricity use in 2004.     

Between fragmented authoritarianism and policy coordination: Creating a Chinese market for wind energy

The Chinese grid-connected wind energy sector has undergone a number of fundamental changes during its 20 years of existence. The scope of this article is to track the reforms of the energy bureaucracy and its policy approach on the one hand and changes in wind energy installations on the other. By comparing three historically distinct phases of wind energy in China it is shown how policy reforms have changed largely from a state of “fragmented authoritarianism” towards policy coordination. In the initial phase (1986–1993), wind energy was expanding very slowly with disjointed policy making and in the incremental phase (1994–1999), the energy authorities were in dispute over the strategy and launched conflicting policy initiatives with poor results in wind energy output. The latest coordinated phase (2000–2006), however, developed a coherent renewable energy agenda and policy regime for the wind power sector. It is found that this phase with coordinated market regulations and incentives has helped give birth to a take-off in Chinese wind energy installations and substantial cost reductions, although the latter is threatening the profitability of wind farms. The article contributes to the academic debate over the role of policy making in renewable energy development and argues that China should continue, and improve, the coordination of regulations and incentives.     

Towards sustainable energy systems: The related role of hydrogen

The role of hydrogen in long run sustainable energy scenarios for the world and for the case of Germany is analysed, based on key criteria for sustainable energy systems. The possible range of hydrogen within long-term energy scenarios is broad and uncertain depending on assumptions on used primary energy, technology mix, rate of energy efficiency increase and costs degression (“learning effects”). In any case, sustainable energy strategies must give energy efficiency highest priority combined with an accelerated market introduction of renewables (“integrated strategy”). Under these conditions hydrogen will play a major role not before 2030 using natural gas as a bridge to renewable hydrogen. Against the background of an ambitious CO₂-reduction goal which is under discussion in Germany the potentials for efficiency increase, the necessary structural change of the power plant system (corresponding to the decision to phase out nuclear energy, the transformation of the transportation sector and the market implementation order of renewable energies (“following efficiency guidelines first for electricity generation purposes, than for heat generation and than for the transportation sector”)) are analysed based on latest sustainable energy scenarios.     

Policy progress in mitigation of climate change in Taiwan

To make an active contribution to the global effort in mitigation of climate change, Taiwan government has implemented the “Frameworks for Sustainable Energy Policy—An Energy-Saving and Carbon-Reduction Action Plan” in June 2008. It has made a commitment of a stepwise reduction of nationwide greenhouse gas (GHG) emissions, which returns the nationwide GHG emission to 2008 levels by 2020, then reduces to 2000 levels by 2025, and finally cuts 50% of 2000 levels by 2050. The fundamental strategy is to reduce the GHG emission under acceptable economic development and energy security to achieve generation-spanning triple-win in energy, environment and economy. The major policy instruments such as “Statute for Renewable Energy Development”, “GHG Reduction Law (draft),” “Regulation for Energy Tax (draft),” and “Energy Management Act” have been either implemented or scheduled for legislative reviewing. The purpose of this paper is to present an updated review of the outcomes of GHG emission reduction in Taiwan. In addition, the progress and priority of policy instruments in GHG emission reduction are analyzed as well.     

The cost of domestic energy prices to Saudi Arabia

The issue of subsidies on domestic energy prices has moved up the policy agenda, most recently as a result of the G20 commitment in September 2009 to phase out such subsidies. However, what constitutes a “subsidy” is complex and controversial. The IEA in its last World Energy Outlook claimed that Saudi Arabia was second in the world in terms of its levels of subsidy on domestic energy prices. However, because Saudi Arabia is a price maker in the international oil market, the methodology used by the IEA is seriously flawed. This paper explains the problems with the methodology for computing subsidies and explains the correct method in the case of Saudi Arabia. It then attempts to measure the levels of subsidy in Saudi Arabia using this methodology. However, while it converts the IEA's “subsidy” of $23 billion into a net “profit” of $5.7 billion, it goes on to point out that the current low price regime is causing problems for Saudi Arabia.