Main Cost Influencing Factors
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Site and Geology:
The availability and suitability of underground caverns significantly impact CAES costs. Salt dome caverns are generally preferred due to their low leakage rates, which can reduce costs compared to aquifer storage. -
Technology and Design:
The choice of CAES technology and design can affect costs. Traditional CAES uses natural gas for additional power generation, while adiabatic designs aim to reduce fuel dependency by utilizing thermal energy storage, though these may involve higher upfront costs. -
Efficiency and Operational Costs:
CAES systems have lower round-trip efficiencies (typically 60-65%) compared to other storage solutions like lithium-ion batteries, which impacts operational costs. Additionally, fuel consumption (natural gas or other fuels) contributes to ongoing expenses. -
Scalability and Duration:
The scale of CAES can influence costs per unit; larger storage capacities can achieve economies of scale. However, long-duration storage might require larger caverns or more complex systems. -
Engineering, Procurement, and Construction (EPC):
EPC costs are significant and include factors like project management, contingency fees, and engineering costs, often estimated around 20% of total project costs. -
Maintenance Costs:
CAES systems have moving parts that require more maintenance compared to static systems like lithium-ion batteries, which can increase overall costs over time. -
Electrical Market Dynamics:
The profitability of CAES is often dependent on market conditions such as price differences between peak and off-peak electricity prices, which can influence the economic viability of a CAES installation.
These factors combined determine the overall cost-effectiveness of a CAES project.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-main-factors-influencing-the-cost-of-caes/
