Person:

Safaei, Hossein

Interest in compressed air energy storage (CAES) technology has been renewed driven by the need to manage variability form rapidly growing wind and solar capacity. Distributed CAES (D-CAES) design aims to improve the efficiency of conventional CAES through locating the compressor near concentrated heating loads so capturing additional revenue through sales of compression waste heat. A pipeline transports compressed air to the storage facility and expander, co-located at some distance from the compressor. The economics of CAES are strongly dependant on electricity and gas markets in which they are embedded. As a case study, we evaluated the economics of two hypothetical merchant CAES and D-CAES facilities performing energy arbitrage in Alberta, Canada using market data from 2002 to 2011. The annual profit of the D-CAES plant was $1.3 million more on average at a distance of 50 km between the heat load and air storage sites. Superior economic and environmental performance of D-CAES led to a negative abatement cost of −$40/tCO2e. We performed a suite of sensitivity analyses to evaluate the impact of size of heat load, size of air storage, ratio of expander to compressor size, and length of pipeline on the economic feasibility of D-CAES.

Increasing electrification of the economy while decarbonizing the electricity supply is among the most effective strategies for cutting greenhouse gas (GHG) emissions in order to abate climate change. This thesis offers insights into the role of bulk energy storage (BES) systems to cut GHG emissions from the electricity sector. Wind and solar energies can supply large volumes of low-carbon electricity. Nevertheless, large penetration of these resources poses serious reliability concerns to the grid, mainly because of their intermittency. This thesis evaluates the performance of BES systems – especially compressed air energy storage (CAES) technology – for integration of wind energy from engineering and economic aspects. Analytical thermodynamic analysis of Distributed CAES (D CAES) and Adiabatic CAES (A CAES) suggest high roundtrip storage efficiencies (~80% and 70%) compared to conventional CAES (~50%). Using hydrogen to fuel CAES plants – instead of natural gas – yields a low overall efficiency (~35%), despite its negligible GHG emissions. The techno-economic study of D CAES shows that exporting compression heat to low-temperature loads (e.g. space heating) can enhance both the economic and emissions performance of compressed air storage plants. A case study for Alberta, Canada reveals that the abatement cost of replacing a conventional CAES with D CAES plant practicing electricity arbitrage can be negative (-$40 per tCO2e, when the heat load is 50 km away from the air storage site). A green-field simulation finds that reducing the capital cost of BES – even drastically below current levels – does not substantially impact the cost of low-carbon electricity. At a 70% reduction in the GHG emissions intensity of the grid, gas turbines remain three times more cost-efficient in managing the wind variability compared to BES (in the best case and with a 15-minute resolution). Wind and solar thus, do not need to wait for availability of cheap BES systems to cost-effectively decarbonize the grid. The prospects of A CAES seem to be stronger compared to other BES systems due to its low energy-specific capital cost.