Waste Heat Recovery: A risk management strategy for wind farms and compressed energy storage plants
- Resource Type
- Conference
- Authors
- Doluweera, Ganesh; Safaei, Hossein
- Source
- 2014 IEEE PES General Meeting | Conference & Exposition PES General Meeting | Conference & Exposition, 2014 IEEE. :1-5 Jul, 2014
- Subject
- Engineering Profession
Power, Energy and Industry Applications
Wind farms
Heat recovery
Wind power generation
Risk management
Electricity
Mathematical model
Energy Storage
Risk Management
Waste Heat Recovery
Wind energy
- Language
- ISSN
- 1932-5517
Risk management strategies are crucial to improve economic attractiveness of intermittent renewables. Large scale integration of these variable sources without proper contingency measures is a reliability concern for grid operators. Here, we use a two-stage stochastic optimization model in order to evaluate economic attractiveness of two bulk energy storage technologies to a risk averse wind farm operator participating in a hypothetical day-ahead market. Conventional compressed air energy storage (CAES) and a variation of CAES called D-CAES which earns extra revenues through sales of otherwise wasted heat of compression are used as storage technologies. In this case study, standalone wind recovered only 54% of its annual costs (capital and fixed operating and maintenance) while both CAES plants provided 10% return on investment. Imbalance penalties were 50% lower for D-CAES compared to CAES.