Possibilities for use of Compressed Air Energy Storage for electricity storage in future energy systems

The project evaluated the benefit of compressed air energy storage (CAES) in a Danish system, where wind power accounts for 20% of consumption and CHP for 50%. The project starting point was energy system analyses based on hourly consumption. Analyses include Historical prices for a period of seven years as well as expected future price fluctuations. The conclusion is that neither historical nor expected future price fluctuations in the spot market alone will make a CAES cost-effective. The CAES technology can also be used in the regulating power market. However, this is a risky strategy because the market is small.