ABSTRACT ACKNOWLEDGEMENTS TABLE OF CONTENTS CHAPTER 1: INTRODUCTION1.1 Motivation1.2 Purpose1.3 Funding1.4 Framework of Thesis CHAPTER 2: BACKGROUND2.1 Utilities’ Need for Energy Storage2.2 Energy Storage Technologies2.3 CAES Background2.3.1 Efficiency of CAES2.3.2 Reasons for Choosing CAES2.4 Non-Storage Wind Integration CHAPTER 3: SITE ANALYSIS3.1 CAES Site Requirements3.2 Colorado Site Analysis3.3 Site Selection for Modeling CHAPTER 4: MODELING4.1 Modeling Goals and Objectives4.2 Model Parameters4.2.1 Model Inputs4.2.2 Model Outputs4.3 Data4.4 Model Formulation4.5 Modeling Software4.6 Model Results4.6.1 Single site model4.6.2 Five site model4.7 Results and Analysis4.7.1 Sensitivity Analysis4.7.2 Gas Turbine ComparisonCHAPTER 5: CONCLUSIONS5.1 Future Work REFERENCESWIND INTEGRATED COMPRESSED AIR ENERGY STORAGE IN COLORADO by RICHARD DAVID MOUTOUX BS University of Virginia, 1999 MS University of Virginia, 2004 A thesis submitted to the Faculty of the Graduate School of the University of Colorado in partial fulfillment of the requirements for the degree of Master of Science Department of Electrical Engineering 2007This thesis entitled: Wind Integrated Compressed Air Energy Storage in Colorado written by Richard David Moutoux has been approved for the Department of Electrical Engineering _______________________________________________ Dr. Frank Barnes, Committee Chair _______________________________________________ Dr. Michael Hannigan, Committee Member _______________________________________________ Dr. Fred Glover, Committee Member Date: _________________ The final copy of this thesis has been examined by the signatories, and we find that both the content and the form meet acceptable presentation standards of scholarly work in the above mentioned discipline.ABSTRACT Global concerns over climate change and sustainability have led to a recent worldwide push towards electricity derived from renewable and sustainable resources. In Colorado, a renewable portfolio standard has led to a huge upsurge in the development of wind generated electricity. This energy source is by nature intermittent and, therefore, must be backed up by some type of reliable generator. Energy storage can be used to make wind a reliable resource that can be depended on when needed. Compressed Air Energy Storage (CAES) is a technology used for large-scale energy storage. Energy is stored by using electricity to compress air in a large underground cavern, and then is recaptured using a modified natural gas turbine. Colorado has many locations that may have suitable geology to create a cavern for CAES. These geological features include salt domes, bedded salt, aquifers, hard rock mines, and natural gas wells. This thesis investigates some of these potential CAES locations and determines possible sites for a CAES facility. An energy storage system will only be built if it makes economic sense. To do this it must be shown to have a good chance of making a profit, and it must be the lowest cost option to get the job done. Economic models are developed in this thesis to determine if a wind integrated CAES facility can create profit by allowing the wind energy to be sold at peak midday values for reliable energy. The modeling shows that this should be a profitable venture. A CAES facility in Colorado makes economic sense and would be an excellent asset for mitigating the problems associated with the intermittency of wind energy generation. iiiACKNOWLEDGEMENTS This thesis project has provided me with an excellent learning experience and a unique opportunity to interact with professionals in industry and government as a graduate student. Few thesis projects have the practical implications and exposure to the work world that this one has provided for me. I would like to thank Dr. Frank Barnes for providing me with the opportunity to work on this project, for serving as my academic and research advisor, and for all of the stories he has told me. I truly appreciate working for someone with his perspective. I would also like to thank Jonah Levine and Gregory Martin for everything that they have helped me with through these last two years. The three of us have made an excellent working team, and each of us brings different skills which seem to compliment the others very well. All of our theses were better due to the collaboration with each other. There are many other people I would like to thank, and some I will surely leave out by accident. Thanks to Dr. Dag Nummedal and CERI for funding this project, Dr. Carl Koval and the CU Energy Initiative for funding, Dr. Lakshman Guruswamy, Kevin Doran, and the rest of the CEES at the CU Law School for assistance, Dr. Ewald Fuchs for his advisement, Kunal Shah for the help he has provided this semester as these projects transition, and many others. Finally, thanks to all my family and friends for always sticking by me, supporting me, and believing that I could finally do a thesis on time. ivTABLE OF CONTENTS ABSTRACT........................................................................................................... iii ACKNOWLEDGEMENTS................................................................................... iv TABLE OF CONTENTS........................................................................................ v CHAPTER 1: INTRODUCTION ........................................................................... 1 1.1 Motivation..................................................................................................... 1 1.2 Purpose.......................................................................................................... 3 1.3 Funding ......................................................................................................... 4 1.4 Framework of Thesis .................................................................................... 4 CHAPTER 2: BACKGROUND ............................................................................. 6 2.1 Utilities’ Need for Energy Storage ............................................................... 6 2.2 Energy Storage Technologies ....................................................................... 8 2.3 CAES Background...................................................................................... 12 2.3.1 Efficiency of CAES ............................................................................. 14 2.3.2