CAES IN TEXAS

As Texas worries about power generation, is answer underground? Laylan Copelin, April 8, 2012 (Austin American Statesman)

"…Chamisa Energy…[is planning] compressed air [energy] stored [CAES]…Generators will use wind-generated electricity, mostly at night when power demands are low and prices are cheapest, to compress air into salt caverns that will be carved 2,000 feet below the surface. As the demand for electricity rises during the day, the process is reversed. A mixture of compressed air and a small amount of natural gas would generate power.

"…[It] became possible with a recent decision by the Public Utility of Commission of Texas that allows all storage technologies to pay wholesale rates…[S]torage technologies — from batteries to flywheels to compressed air — are coming to the forefront as a way to maximize solar and wind generation that are intermittent…Chamisa officials expect to be operational by 2014, just as the state completes 2,300 miles of high-voltage transmission lines…to bring more wind-generated electricity from West Texas to the rest of the state where it is needed…"

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"…[W]ater demand for cooling [the] plant is much less than other generation types — a plus in the arid Panhandle…The 270-megawatt facility would come online just when state officials are projecting a shortage of electricity generation for Texas…[It] could be expanded to 810 megawatts in phases by creating more caverns…[and] initially would be able to run continuously for 36 hours but could operate up to 100 hours if more caverns are added…There even could be the ability to store and generate power simultaneously…[The] only question is whether the technology is viable with… natural gas prices…well below $3 per million British thermal units…"

"ERCOT officials must keep the supply and demand of electricity almost perfectly balanced, or the grid would crash and the lights would go out…To do so, power must be added or taken off the grid quickly…The [CAES] facility will be able to ramp up 26 megawatts almost instantaneously and could be at the full 270 megawatts within 10 minutes…[T]he facility can [also] ramp down quickly…[and] would be able to turn on and off frequently…[T]hat flexibility is the strength of energy storage…[T]he next four years are [expected to be] pivotal as the industry comes to grips with whether energy storage can be a full-fledged, financially viable segment of the market…"