Economic evaluation of installation of standalone wind farm and wind + CAES system for the new regulating tariffs for renewables in Egypt

Abstract

Compressed Air Energy Storage (CAES) is widely recognized as a viable solution for large-scale grid integrated renewable energy systems in terms of load levelling to solve/minimize the intermittency effect of renewable energy systems especially with increased penetration of renewables to the grid. This study assesses the economic value of adding compressed air energy storage (CAES) plant to a renewable energy system and how this impacts the overall financial appeal of the system at hand, taking Egyptian grid as a case in point. Numerical modelling using MATLAB was performed to analyse the benefits of adding a CAES system to planned wind farms in Egypt by 2020 for both load-levelling as well as optimizing economic benefit. The results show that the addition of a CAES system would increase the profitability for the new Tariff for wind systems set by the Egyptian government with a NPV of $306m compared to a NPV of $207m of a stand-alone wind system at the end of 25 years of operation. Also, the economic benefits increase if the government provides subsidies for new installations of renewable energy systems, or by lowering the interest rates.

A combined experimental and modelling investigation of an overground compressed-air energy storage system with a reversible liquid-piston gas compressor/expander

“…Further, the system is analysed in terms of the annual total cost (ATC), annual total income (ATI), annual total profit (ATP), total investment cost (TIC), operation and maintenance costs (CO&M) and dynamic payback period (DPP). The ATC mainly consists of annual CO&M and running cost due to electricity or fuel Cin [63], which is defined as:…”

“…Therefore, the actual operating hour in one day is the sum of charging time and discharging time. The annual input cost is then [63]:…”

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Recent advances in district energy systems: A review

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