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EPRI Proprietary Licensed Material proven components, excellent operating flexibility, reliability, and availability, and competitive costs. • Innovative Concept 4 -- There are a number of studies investigating the integration of wind farms with small capacity CAES plants. The concept is to use the wind power (primarily during night hours) to compress the air for storage in above ground piping and/or other pressure vessels. During peak hours of electric demand, the compressed air supplies a combustion turbine to generate electric power for sale at premium prices. Since the compression is independent of the power generation, this hybrid plant can operate continuously to provide base load power in addition to the intermittent peak load. 3. Applications CAES plants designed for specific applications can provide economic benefit to owners and/or operators of power generation facilities, and transmission and distribution (T&D) facilities. The benefits of using a CAES plant to support power generation include the following: • Increase use of generation facilities during off-peak hours (i.e., during the storage plant charging cycle) • Provide ramping, intermediate, and peaking power during the day. • Store nighttime wind energy for delivery during the higher priced daytime hours (a remote wind farm would be an excellent application for CAES since air can be compressed at night when excess wind energy is most available). • Provide frequency regulation (CAES can provide much better frequency control than a baseload power plant). The benefits of using a CAES plant for T&D support include the following: • Provide VAR support (e.g., by operating the CAES plant to supply reactive power in the synchronous condenser mode). A CAES plant can be operated 24 hours a day in the synchronous condenser mode, since it does not require any air from the storage reservoir. • Provide peak shaving to enable deferment of T&D upgrades (e.g., by siting surface-based CAES plants near load centers). This application has a very large benefit-to-cost ratio. • Provide area control to reduce energy imbalances between grid regions. • Provide spinning reserve. This application has twice the spinning reserve capability (MW) during the charging cycle time since the grid operator gets credit for the power off-loaded during the charge cycle in addition to the plant generation capacity. • Provide supplemental reserve. This application has twice the spinning reserve capability (MW) during the charging cycle time since the grid operator gets credit for the power offloaded during the charge cycle in addition to the plant generation capacity. • Provide off-peak-on-peak arbitrage Compressed Air Energy Storage (CAES) Page 23
EPRI Proprietary Licensed Material • Provide ramping power when the demand on a feeder or substation increases at a higher rate than the other generating capacity can ramp. • Absorb excess generating capacity with its compressor during times of rapidly decreasing demand. This application is particularly useful when base nuclear, hydro, or fossil capacity is available at very low prices during off peak time periods. In the classical configuration, a CAES plant needs to be connected to a grid that has access to off-peak charging energy from a power generating plant that is underutilized during the off-peak hours. However, at least one of the advanced CAES cycles uses the plant itself to charge the air storage media. T&D Applications The following describes how CAES plants could be used for six examples of T&D applications. With the ongoing deregulation of the utility industry, the price differential between on- and offpeak electricity is much greater than it used to be. For example, in California during the 2001 energy crisis, the off-peak electricity price was in the range of $10-20/MWh and the on-peak electricity price was in the range of $1,000-5,000/MWh. Finally, it is important to know that one CAES plant can be designed to meet the needs of many of these applications. That is, a plant can provide multiple benefits simultaneously (e.g., peak shaving, spinning reserve, dynamic ramping duty, and arbitrage). VAR Support (Reactive Power Supply) CAES can provide reactive power support and voltage control for the T&D system. The motor/generator can easily be declutched from the expander and compressor system and can be controlled using the exciter to perform synchronous duty operation. As a result, the plant can supply reactive power (plus or negative), voltage control, and voltage support. Peak shaving Like all storage plants that have at least 15 minutes of storage, CAES can provide real power support during peak demand times. Peak shaving allows the utility to generate when the demand is high and avoid purchasing expensive power from the spot market. The peak-shaving concept is to replace expensive energy needed during the peak operating hours (typically 8:00 A.M. to 8:00 P.M.) with inexpensive energy produced and stored off-peak by the CAES plant. In peaking applications, the CAES system is usually operated only during peak demand periods, implying relatively low generating hours (e.g., 500 hours per year) and high avoided-peak-time electricity prices. The potential benefits of CAES in peaking applications include the option to defer investments in additional T&D capacity and the avoided costs of purchasing high-priced electric power during high demand periods. Compressed Air Energy Storage (CAES) Page 24
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