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.