Can a wind farm with CAES survive in the day-ahead market?

Brandon Mauch, Pedro M.S. Carvalho and Jay Apt

Energy Policy, 2012, vol. 48, issue C, 584-593

Abstract: We investigate the economic viability of coupling a wind farm with compressed air energy storage (CAES) to participate in the day-ahead electricity market at a time when renewable portfolio standards are not binding and wind competes freely in the marketplace. In our model, the CAES is used to reduce the risk of committing uncertain quantities of wind energy and to shift dispatch of wind generation to high price periods. Other sources of revenue (capacity markets, ancillary services, price arbitrage) are not included in the analysis. We present a model to calculate profit maximizing day-ahead dispatch schedules based on wind forecasts. Annual profits are determined with dispatch schedules and actual wind generation values.

Keywords: Wind energy; Energy storage; Power markets (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:48:y:2012:i:c:p:584-593

DOI: 10.1016/j.enpol.2012.05.061

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