Compressed Air Energy Storage offers flexibility for low cost providers of electricity

Compressed Air Energy Storage ({open_quotes}CAES{close_quotes}) offers generation and transmission operators important flexibility and operating cost advantages not available from conventional power generating equipment, as well as most of the same benefits as competing storage technologies. Major advances in CAES technology have greatly extended its applicability, offering significant operating and financial benefits beyond those of prior schemes. CAES showed operating savings in all of the configurations studied, and in many instances substantial savings beyond capital costs were demonstrated. In order to determine the extent to which CAES will enable a power producer or transmission company ({open_quotes}user{close_quotes}) to reduce its cost of energy and/or ancillary services, a detailed analysis of operating costs under current and expected conditions must be undertaken. This paper presents the results of several such analyses.