The global compressed air energy storage market is
expected to thrive during the forecast period, 2024-2028 due to the growth in
iron & steel and other end-user industry. Compressed air energy storage
(CAES) technology is a promising solution to the energy storage problem. It
offers high storage capacity and has a long-life cycle. Despite its low energy
efficiency and limited installation locations, the system’s benefits outweigh
its drawbacks, providing a viable solution for balancing the supply and demand
of electricity from renewable energy sources. With continued development and
implementation of CAES technology, it is expected to play an important role in
future energy storage systems.
CAES technology can store energy by compressing air in
storage tanks or underground caverns to high pressure and later release it to
generate electricity. Compressed air is stored in storage tanks, usually large
underground caverns, and can be stored for long periods of time until needed.
When power demand increases, compressed air is released and passed through a
turbine to generate electricity. The heat generated in the process of
compressing air is usually wasted. However, in CAES systems, the heat generated
during compression is captured and stored in a thermal energy storage system.
This stored heat can be used to preheat the compressed air before it enters the
turbine, making the process more efficient. CAES technology has several
advantages over other energy storage systems. First, it has a large storage
capacity and can store energy for a long time. Second, it is a clean technology
that emits no pollutants or greenhouse gases during energy production. In
addition, CAES systems can be located close to power plants and grids, reducing
transmission losses and improving operational efficiency.
CAES systems can be constructed from small to large
capacities. CAES technology provides moderate response speed and good partial
load performance. Practical applications of large CAES plants include grid applications
for load shifting, peak shaving, frequency and voltage control. CAES can
operate in intermittent renewable energy applications, especially wind power,
to smooth the power output, and has received attention from academic
researchers and the industrial sector.
There is a growing demand for clean energy that
reduces dangerous greenhouse gas emissions. Energy demand is increasing
significantly due to urbanization and the growth of the world population. This
has increased the need for infrastructure and power plants. Compressed air
energy storage systems offer untapped potential to generate sustainable energy
and thus help meet the world’s growing energy needs. Additionally, the
compressed air is stored in his CAES system, so he doesn’t have to run the compressor
as often. This increases compressor life and reduces general wear and tear on
the compressor. These factors are expected to offer great opportunities to
accelerate the compressed air storage market in the coming years.
Enhanced Air Quality and Compressor System Stability
is Expected to Drive the Global Compressed Air Energy Storage Market
Compressed air energy storage is improving air quality
by reducing harmful carbon dioxide emissions. For example, the adiabatic CAES
process can result in zero CO2 emissions. This will reduce our dependence on
fossil fuel energy grids. Compressed air storage is therefore an
environmentally friendly energy storage solution that helps meet net zero
carbon emission targets. Using CAES as additional energy storage provides grid
stability during peak power consumption. This minimizes the load on the
electrical infrastructure and enhances energy security. Even on small farms,
this technology offers a reliable and stable power generation option. These
factors are expected to increase the size of the compressed air energy storage
market in the coming years.
Growing Need for Sustainable Energy
The demand for sustainable energy, which helps reduce
harmful greenhouse gas emissions, is growing around the world. This is due to global
population growth and urbanization and has increased the demand for power
plants and the necessary infrastructure. Compressed air energy storage systems
have untapped potential in renewable energy generation and can help meet
growing energy demands. Additionally, the compressed air is stored in CAES
system, so it doesn't have to run the compressor as often. This increases
compressor life and reduces overall compressor wear. These factors are expected
to offer a great opportunity to boost the market’s growth.
Latest Investments fuelling the Global Compressed Air
Energy Storage Market Growth
- In 2018, the Institute of Engineering
Thermophysics, Chinese Academy of Sciences has commissioned a 100 MW
Compressed Air Energy Storage (CAES) facility in Zhangjiakou City, Hebei
Province, China. The project was designed by the Institute of Engineering
Thermophysics, Chinese Academy of Sciences. The plant can generate more
than 132 million kWh of electricity annually, powering 40,000 to 60,000
households during peak electricity consumption. CAES has the advantages of
large storage capacity, low investment cost, long life, safety, and
environmental friendliness. It is considered one of the most promising
technologies for large-scale energy storage. The plant is based on
multi-stage high capacity compressors and expanders and highly efficient
supercritical heat storage and heat exchange. The company started a
demonstration project in 2018 after developing two compressed air storage
systems with capacities of 1.5 MW and 10 MW respectively in 2013 and 2016.
- In 2022, the Australian Renewable Energy Agency
(ARENA) announced support for the development of Hydrostor's Advanced
Compressed Air Storage Project (A-CAES) in New South Wales. The
large-scale project in historic Broken Hill mining area to use 200
MW/1,600 MWh of Canadian firm Hydrostor's proprietary A-CAES technology to
support grid stability and renewable energy integration is intended for.
Around USD28.42 million were raised to build Hydrostor's Silver City
energy storage project, built in an abandoned mine. Hydrostor will receive
ARENA's contribution if it can achieve the planned financial completion of
the project by the end of 2023. The estimated total cost is expected to be
around USD437.79 million. It is expected to be one of the largest
compressed air storage systems in the world, capable of storing renewable
low voltage energy for up to eight hours.
- In 2022, Goldman Sachs invested USD250 million to
help the company build more than 1 GW/8.7 GWh of Advanced Compressed Air
Energy Storage (A-CAES) projects in California and Australia. Hydrostor's
A-CAES process uses renewable energy or power from the grid to power the
compressor. Once the heat is extracted for reuse in the thermal process,
the compressed air is sent underground and stored in caverns where it can
be converted into electricity as needed. According to the company, A-CAES
allows to store energy from five hours to several days. The financial
giant pays Hydrostor based on the achievement of project milestones. The
funding is expected to also help energy storage companies expand into
markets with immediate demand for flexible energy storage.