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Economic assessment for compressed air energy storage business model alternatives

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  • Matos, Catarina R.
  • Pereira da Silva, Patrícia
  • Carneiro, Júlio F.

Abstract

Compressed air energy storage (CAES) is a large-scale energy storage system with long-term capacity for utility applications. This study evaluates different business models' economic feasibility of CAES pre-selected reservoir case studies. It assesses several scenarios for each case study and analyzes two business models: one for the storage of excess renewable energy sources (RES) and another for energy arbitrage. The novelty of this work is performing the economic investment assessment using a Monte Carlo Simulation (MCS) methodology applied to CAES, considering the uncertainties associated with such types of projects and evaluating different business models for the technology.

Suggested Citation

  • Matos, Catarina R. & Pereira da Silva, Patrícia & Carneiro, Júlio F., 2023. "Economic assessment for compressed air energy storage business model alternatives," Applied Energy, Elsevier, vol. 329(C).
    • Handle: RePEc:eee:appene:v:329:y:2023:i:c:s0306261922015306
    DOI: 10.1016/j.apenergy.2022.120273
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    References listed on IDEAS

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    1. Catarina R. Matos & Júlio F. Carneiro & Patrícia Pereira da Silva & Carla O. Henriques, 2021. "A GIS-MCDA Approach Addressing Economic-Social-Environmental Concerns for Selecting the Most Suitable Compressed Air Energy Storage Reservoirs," Energies, MDPI, vol. 14(20), pages 1-22, October.
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    1. Liu, Chunyu & Zheng, Xinrui & Yang, Haibin & Tang, Waiching & Sang, Guochen & Cui, Hongzhi, 2023. "Techno-economic evaluation of energy storage systems for concentrated solar power plants using the Monte Carlo method," Applied Energy, Elsevier, vol. 352(C).

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