IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v37y2009i8p3149-3158.html
   My bibliography  Save this article

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

Author

Listed:
  • Denholm, Paul
  • Sioshansi, Ramteen

Abstract

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.

Suggested Citation

  • Denholm, Paul & Sioshansi, Ramteen, 2009. "The value of compressed air energy storage with wind in transmission-constrained electric power systems," Energy Policy, Elsevier, vol. 37(8), pages 3149-3158, August.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:8:p:3149-3158
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(09)00232-8
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Denholm, Paul, 2006. "Improving the technical, environmental and social performance of wind energy systems using biomass-based energy storage," Renewable Energy, Elsevier, vol. 31(9), pages 1355-1370.
    2. Walawalkar, Rahul & Apt, Jay & Mancini, Rick, 2007. "Economics of electric energy storage for energy arbitrage and regulation in New York," Energy Policy, Elsevier, vol. 35(4), pages 2558-2568, April.
    3. Sioshansi, Ramteen & Denholm, Paul & Jenkin, Thomas & Weiss, Jurgen, 2009. "Estimating the value of electricity storage in PJM: Arbitrage and some welfare effects," Energy Economics, Elsevier, vol. 31(2), pages 269-277, March.
    4. Greenblatt, Jeffery B. & Succar, Samir & Denkenberger, David C. & Williams, Robert H. & Socolow, Robert H., 2007. "Baseload wind energy: modeling the competition between gas turbines and compressed air energy storage for supplemental generation," Energy Policy, Elsevier, vol. 35(3), pages 1474-1492, March.
    5. Denholm, Paul & Margolis, Robert M., 2007. "Evaluating the limits of solar photovoltaics (PV) in traditional electric power systems," Energy Policy, Elsevier, vol. 35(5), pages 2852-2861, May.
    6. DeCarolis, Joseph F. & Keith, David W., 2006. "The economics of large-scale wind power in a carbon constrained world," Energy Policy, Elsevier, vol. 34(4), pages 395-410, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Castagneto Gissey, Giorgio & Subkhankulova, Dina & Dodds, Paul E. & Barrett, Mark, 2019. "Value of energy storage aggregation to the electricity system," Energy Policy, Elsevier, vol. 128(C), pages 685-696.
    2. Sioshansi, Ramteen & Denholm, Paul & Jenkin, Thomas, 2011. "A comparative analysis of the value of pure and hybrid electricity storage," Energy Economics, Elsevier, vol. 33(1), pages 56-66, January.
    3. Fallahi, Farhad & Nick, Mostafa & Riahy, Gholam H. & Hosseinian, Seyed Hossein & Doroudi, Aref, 2014. "The value of energy storage in optimal non-firm wind capacity connection to power systems," Renewable Energy, Elsevier, vol. 64(C), pages 34-42.
    4. Carson, Richard T. & Novan, Kevin, 2013. "The private and social economics of bulk electricity storage," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 404-423.
    5. Berrada, Asmae & Loudiyi, Khalid & Zorkani, Izeddine, 2016. "Valuation of energy storage in energy and regulation markets," Energy, Elsevier, vol. 115(P1), pages 1109-1118.
    6. Daniel R. Jiang & Warren B. Powell, 2015. "Optimal Hour-Ahead Bidding in the Real-Time Electricity Market with Battery Storage Using Approximate Dynamic Programming," INFORMS Journal on Computing, INFORMS, vol. 27(3), pages 525-543, August.
    7. Succar, Samir & Denkenberger, David C. & Williams, Robert H., 2012. "Optimization of specific rating for wind turbine arrays coupled to compressed air energy storage," Applied Energy, Elsevier, vol. 96(C), pages 222-234.
    8. Fertig, Emily & Apt, Jay, 2011. "Economics of compressed air energy storage to integrate wind power: A case study in ERCOT," Energy Policy, Elsevier, vol. 39(5), pages 2330-2342, May.
    9. Zakeri, Behnam & Syri, Sanna, 2015. "Electrical energy storage systems: A comparative life cycle cost analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 569-596.
    10. Weibelzahl, Martin & Märtz, Alexandra, 2018. "On the effects of storage facilities on optimal zonal pricing in electricity markets," Energy Policy, Elsevier, vol. 113(C), pages 778-794.
    11. Pedro Crespo Del Granado & Stein Wallace & Zhan Pang, 2016. "The impact of wind uncertainty on the strategic valuation of distributed electricity storage," Computational Management Science, Springer, vol. 13(1), pages 5-27, January.
    12. McConnell, Dylan & Forcey, Tim & Sandiford, Mike, 2015. "Estimating the value of electricity storage in an energy-only wholesale market," Applied Energy, Elsevier, vol. 159(C), pages 422-432.
    13. Dusonchet, L. & Favuzza, S. & Massaro, F. & Telaretti, E. & Zizzo, G., 2019. "Technological and legislative status point of stationary energy storages in the EU," Renewable and Sustainable Energy Reviews, Elsevier, vol. 101(C), pages 158-167.
    14. Wonchang Hur & Yongma Moon & Kwangsup Shin & Wooje Kim & Suchul Nam & Kijun Park, 2015. "Economic Value of Li-ion Energy Storage System in Frequency Regulation Application from Utility Firm’s Perspective in Korea," Energies, MDPI, vol. 8(6), pages 1-18, May.
    15. Monica Giulietti & Luigi Grossi, 2013. "Revenues from storage in a competitive electricity market: Empirical evidence from Great Britain," Working Papers 2013/37, Institut d'Economia de Barcelona (IEB).
    16. He, Xian & Delarue, Erik & D'haeseleer, William & Glachant, Jean-Michel, 2011. "A novel business model for aggregating the values of electricity storage," Energy Policy, Elsevier, vol. 39(3), pages 1575-1585, March.
    17. Lyons, P.F. & Wade, N.S. & Jiang, T. & Taylor, P.C. & Hashiesh, F. & Michel, M. & Miller, D., 2015. "Design and analysis of electrical energy storage demonstration projects on UK distribution networks," Applied Energy, Elsevier, vol. 137(C), pages 677-691.
    18. Yushen Miao & Tianyi Chen & Shengrong Bu & Hao Liang & Zhu Han, 2021. "Co-Optimizing Battery Storage for Energy Arbitrage and Frequency Regulation in Real-Time Markets Using Deep Reinforcement Learning," Energies, MDPI, vol. 14(24), pages 1-17, December.
    19. Chyong, Chi Kong & Newbery, David, 2022. "A unit commitment and economic dispatch model of the GB electricity market – Formulation and application to hydro pumped storage," Energy Policy, Elsevier, vol. 170(C).
    20. Telaretti, E. & Dusonchet, L., 2017. "Stationary battery technologies in the U.S.: Development Trends and prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 380-392.

    More about this item

    Keywords

    Wind Energy storage Transmission;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:37:y:2009:i:8:p:3149-3158. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.