188 Chapter 4
Control Volume Analysis Using Energy
4.8.3
Pumped-Hydro and Compressed-Air Energy Storage
Owing to the dictates of supply and demand and other economic factors, the value
of electricity varies with time. Both the cost to generate electricity and increasingly
the price paid by consumers for electricity depend on whether the demand for it is
on-peak or off-peak. The on-peak period is typically weekdays—for example from
8 a.m. to 8 p.m., while off-peak includes nighttime hours, weekends, and major holidays.
Consumers can expect to pay more for on-peak electricity. Energy storage methods
benefiting from variable electricity rates include thermal storage (see box on p. 111) and
pumped-hydro and compressed-air storage introduced in the following box.
Economic Aspects of Pumped-Hydro and Compressed-Air Energy Storage
Despite the significant costs of owning and operating utility-scale energy storagy systems,
various economic strategies, including taking advantage of differing on- and off-peak elec-
tricity rates, can make pumped-hydro and compressed-air storage good choices for power
generators. In this discussion, we focus on the role of variable electricity rates.
In pumped-hydro storage, water is pumped from a lower reservoir to an upper reservoir,
thereby storing energy in the form of gravitational potential energy. (For simplicity, think of
the hydropower plant of Fig. 4.10 operating in the reverse direction.) Off-peak electricity is used
to drive the pumps that deliver water to the upper reservoir. Later, during an on-peak period,
stored water is released from the upper reservoir to generate electricity as the water flows
through turbines to the lower reservoir. For instance, in the summer water is released from
the upper reservoir to generate power to meet a high daytime demand for air conditioning;
while at night, when demand is low, water is pumped back to the upper reservoir for use
the next day. Owing to friction and other nonidealities, an overall input-to-output loss of
electricity occurs with pumped-hydro storage and this adds to operating costs. Still, differ-
ing daytime and nighttime electricity rates help make this technology viable.
In compressed-air energy storage, compressors powered with off-peak electricity fill
an underground salt cavern, hard-rock mine, or aquifer with pressurized air drawn from
the atmosphere. See Fig. 4.12. When electricity demand peaks, high-pressure compressed
air is released to the surface, heated by natural gas in combustors, and expanded through
a turbine generator, generating electricity for distribution at on-peak rates.
TAKE NOTE...
Cost refers to the amount
paid to produce a good or
service. Price refers to what
consumers pay to acquire
that good or service.
+
–
Compressor
Atmospheric air Air and combustion products
Turbine
+
–
Off-peak
electricity
in
On-peak
electricity
out
Compressed
air out
Cavern
Air in Air out
Compressed
air in
Fuel to combustor
(not shown)
Generator
Fig. 4.12 Compressed-air storage.
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