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CAES Compressed Air Energy Storage Worldwide

The global market for compressed air energy storage (CAES) sits at a turning point. Since its introduction as a utility scale electricity storage technology in the 1970s, low energy prices and a proliferation of cheap natural gas fired peaking power plants slackened demand for energy storage, and CAES never got off the ground. Over the following decades, only two plants were built, one in the US, and one in Germany. And although these facilities provided effective energy storage capacity at reasonable cost, the need for utility scale energy storage was insufficient to kick start the CAES market.

Recent trends, however, threaten to invigorate the CAES market. Global concerns about climate change, environmental pollution, and energy security have generated a strong, bullish market for renewable energy production. Wind and solar markets, in particular, have seen tremendous gains over the last five years. But wind and solar resources are highly variable in nature. Solar technologies can only provide generation capacity when the sun is shining, and wind turbines can only produce electricity when there is sufficient wind available. Often, sun and wind availability does not align with consumer electricity demand. Therefore, in order to effectively meet demand for renewable electricity, as is now mandated by many government institutions around the globe, renewable energy storage is needed. Also, current grid management issues, including congestion along regional power grids, aging (and very costly) transmission infrastructure, and power supply trends are drawing together to make favorable conditions for CAES as solution for peak power supply and grid management.

CAES components also have the advantage of being, for the most part, readily available and mature. Gas turbines, air compressors, recuperators, injection and extraction wells, and other CAES components represent mature technologies that already operate under streamlined economies of scale. Other, more experimental storage technologies, such as fuel cells, flywheels, or massive batteries, are not close to reaching cost parity with CAES installations. In sum, these trends act as drivers in support of a developing and persistent CAES market. Viable CAES markets will re-emerge in the near term, gaining stability as the technology gains traction, and additional projects come on line, through 2014.

CAES Compressed Air Energy Storage Worldwide contains comprehensive data on the global market for CAES technologies, including historic (2004-2009) and forecast (2010-2014) market size data, broken down in terms of CAES components - including the CAES compression subsystem, storage subsystem, and the expansion/generation subsystem. The report identifies key trends affecting the marketplace, along with trends driving growth, and also profiles major technology providers, and end user characteristics.

Read an excerpt from this report below.

Report Methodology

The information in CAES Compressed Air Energy Storage Worldwide is based on data from the U.S. Department of Energy, Energy Information Administration, European Commission, Princeton University, American Wind Energy Association, U.S. national laboratories, the California Energy Commission, U.S. and global energy research institutions, utilities, CAES manufacturers, CAES engineers, along with information from trade associations, business journals, company literature and websites, Securities and Exchange Commission reportings, and research services such as Simmons Market Research Bureau.

What You’ll Get in This Report

CAES Compressed Air Energy Storage Worldwide makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective players can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that CAES Compressed Air Energy Storage Worldwide offers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

How You’ll Benefit from This Report

If your company is already doing business in the CAES technologies and services market, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for CAES technologies, as well as projected markets and trends through 2014.

This report will help:

  • Marketing managers identify market opportunities and develop targeted promotion plans for CAES technologies and services.
  • Research and development professionals stay on top of competitor initiatives and explore demand for CAES technologies and services.
  • Advertising agencies working with clients in the energy storage and renewable energy industries to understand the market for CAES, the application of CAES technologies, and the CAES procurement process, to develop messages and images that compel consumers to invest in CAES.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.


Market Insights: A Selection From The Report


Power Project Financing Trends
As a product market exclusively dependent on capital-intensive construction projects, the CAES market is affected by trends in power project financing, particularly the prevailing financing terms for projects using alternative or undemonstrated technologies.  While relatively inexpensive in comparison to some renewable energy or pumped hydroelectric storage projects costing over $1 billion in investment, CAES facility development and construction remains a minimally-deployed technology requiring substantial capital investment.  The last CAES facility, McIntosh, cost approximately $65 million by its completion in 1991, equivalent to a cost of over $100 million if constructed in 2009.  Although the total cost of a CAES facility includes the balance of plant (BoP) (the supporting systems, facility structure itself, water, gas and electric interconnections) overhead, and other development costs unassociated with the CAES market presented in this report, the total cost of a CAES project is a relevant factor in determining the success of the market for CAES system components.

Similar to most power generation projects pursued by utilities, CAES facilities are likely to be predominately financed through a combination of debt (e.g. loans, revenue bonds) and equity (shares of ownership in the facility and profits realized from its operation).  Repayment schedules of 10-20 years are possible for power plants, while utility revenue bonds may have repayment schedules of over 30 years.  Equity financing is very common among alternative energy, renewable energy, and grid efficiency technologies including grid energy storage facilities.  Joint equity agreements and partnerships may become more common as larger corporations interested in diversifying their energy- and power-related assets enter the CAES industry, and also seek to become end users or partial owners of completed facilities.  Because public utilities represent a majority of the end user market for CAES, utility ratepayers also represent another option for project financing through the introduction of surcharges or higher energy rates.

In the News


 

Global Compressed Air Energy Storage (CAES) Market Empowered as Solution to Power Management Conundrum

New York, April 12, 2010 - The ubiquitous championing of renewable energy production born from global concerns about climate change, environmental pollution, and energy security frequently overlooks one important caveat: the inherently and highly variable nature of renewable resources such as wind and solar power, whose periodic availability doesn’t always align with consumer electricity demand. Additionally, consider the current grid management issues such as aging transmission infrastructure and congestion along regional power grids, and it becomes obvious that a bonafide energy conundrum exists for governments worldwide seeking to meet the demand for renewable electricity.

The answer is renewable energy storage, which is creating new market opportunities for the development of compressed air energy storage (CAES) as a solution for peak power supply and grid management, according to leading industrial market research firm SBI Energy in the recently released report CAES Compressed Air Energy Storage Worldwide.

“CAES offers a very valuable solution. Renewable power generated during off peak periods can easily be stored in a CAES facility, and then released back onto the grid during periods of high electricity demand,” says Robert Eckard, SBI Energy analyst and author of the report. “We’re talking about a technologically mature energy storage option capable of generating electricity for several hours at utility-scale capacities above 100 megawatts, a feat few other market-available grid energy storage technologies can approach.”

At its best, the technology offers the global energy industry and wholesale power markets solutions to issues including baseload renewable power purchasing, responsive and flexible utility scale power generation, increasing of renewable energy capacity factors, and reactive power support.

With the construction of only two previous CAES facilities, the expected re-emergence in construction of new CAES facilities during the period 2010-2014 will have a significant impact on the CAES market, predicts Eckard. SBI Energy experts further anticipate a refocusing towards the manufacture and supply of CAES components, based on a perceived future jump in CAES markets. With only a few dedicated engineering companies and manufacturers a few years ago, the CAES industry is apparently growing through the entrance of project service providers and manufacturers. The entrance of new companies and manufacturers to the CAES market also appears to be driven by governmental support for research and development of the next generation of CAES facilities.

Beyond 2014, SBI Energy forecasts the emergence of CAES outside current hotspots in the United States and Germany, into areas of Asia and Europe with significant long-term wind power development projected in the North Sea (to supply surrounding countries such as Denmark, the United Kingdom, and Germany), along with solar power development in the southern Mediterranean (powering Spain and Italy), and possibly China if wind and solar power development drives future grid energy storage capabilities.

CAES Compressed Air Energy Storage Worldwide provides comprehensive data on the global market for CAES technologies, including historic (2004-2009) and forecast (2010-2014) market size data, broken down in terms of CAES components—including the CAES compression subsystem, storage subsystem, and the expansion/generation subsystem. The report identifies key trends affecting the marketplace, along with trends driving growth, and also profiles major technology providers, and end user characteristics.

About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets. SBI Energy also offers a full range of custom research services.

  • Executive Summary
    • Scope
    • Utility-Scale Grid Energy Storage and CAES
    • CAES Applications and Potential
    • Renewable Energy and CAES
    • CAES Market Origins and History
    • Proposed CAES Projects
      • Table Proposed CAES Projects
    • Factors Affecting Market Size and Growth
    • Product Trends and Pricing
    • Industry Trends
    • Power Project Financing Trends
    • Power and Energy Market Trends
    • Regulatory Support and Incentives for CAES
    • CAES End Users and Operators
    • Summary
  • Overview of Compressed Air Energy Storage
    • Scope
    • Utility-Scale Grid Energy Storage Technologies
      • Compressed Air Energy Storage
      • Pumped Hydroelectric Storage
    • CAES System Operation
    • CAES System Components
      • Electric Motors
      • Air Compressors
      • Intercoolers, Aftercoolers
      • Wellhead/Piping
      • Compressed Air Storage
      • Expanders
      • Combustion Chamber
      • Recuperators
      • Generators
      • Emerging Technology CAES Components
    • Grid Generation Management, Scheduling, and Energy Storage
      • Grid Generation
      • Power Purchasing and Scheduling
      • The Grid and Energy Storage
    • CAES Applications and Potential
      • Power Market and Load Arbitrage
      • Localized and Regionally-Distributed Power Generation
      • Renewable Energy Load-Following
    • CAES and Competing Utility-Scale Energy Storage and Load- Following Power Generation Technologies
      • CAES and PHS
      • CAES and Single-Cycle Gas Turbines
    • Summary
  • Market Size and Growth
    • Scope
    • Market Assessment Methodology
      • Table CAES Project Categories for Market Assessment
    • Market Origins and History
      • Huntorf
      • McIntosh
      • CAES Product and System Development
    • CAES Facility Projects
      • Iowa Stored Energy Park
      • NYSEG CAES Facility
      • PG&E CAES Facility
      • Norton
      • ADELE
      • EnBW CAES Facility
      • Gaelectric Projects
        • Table Montana Transmission Projects
      • Shell WindEnergy Texas Panhandle Wind Farm
      • Ridge Energy Storage Projects
    • Present Market Structure
    • Factors Affecting Market Size and Growth
      • Technological Precedents / Industry and Governmental R&D
      • Grid Demand (Load) Growth
      • Transmission System Upgrades & Modernization
      • Renewable Power Growth
    • Compressed Air Energy Storage Market Size
      • High vs. Low Market Projections
      • Compression Subsystem Market Size
      • Storage Subsystem Market Size
      • Expansion/Generation Subsystem Market Size
      • Total CAES System Market Size
    • Summary
  • Market and Product Trends
    • Scope
    • Product Trends and Pricing
      • Air Compressors
      • Motors/Generators
      • Compressed Air Storage/Well Infrastructure/Piping
      • Expanders/Combustion Chambers
      • Recuperators/Heat Exchangers
    • Industry Trends
    • Power Project Financing Trends
      • Public Utilities
      • Independent Power Producers
    • Power and Energy Market Trends
      • Price Trends for Peak Power
      • Price Trends for Consumer Electricity
      • Costs and Price Trends for Natural Gas
      • Peaking Power Plant Installation Rates and Trends
      • Deregulated Market Trends
      • Renewable Energy and Power Markets
      • Current Power Market Value of Utility-Scale Energy Storage
    • Regulatory Support and Incentives for CAES
      • Renewable Portfolio Standards
    • Environmental Concerns and the Green Movement
    • Summary
  • CAES Products - Promotion and Distribution
    • Scope
    • CAES Research, Development, and Demonstration (RD&D)
      • Private Sector RD&D
      • Government Involvement in RD&D
    • Public and Utility Customer Outreach
    • CAES Product Promotion
    • CAES Product Distribution
    • Summary
  • Competitive Profiles
    • Scope
    • Methodology and Selection of Profiles
    • Alstom Power
      • Table Alstom Power
      • Corporate Background
      • Product Portfolio
      • Performance
      • Company News
      • Innovation
      • Outlook
    • API Heat Transfer
      • Table API Heat Transfer
      • Corporate Background
      • Product Portfolio
        • Table API Heat Transfer's Product and Brand Portfolio for CAES Equipment
      • Performance
    • Dresser-Rand
      • Table Dresser-Rand
      • Corporate Background
      • Product Portfolio
        • Table Dresser-Rand's Product and Brand Portfolio for CAES Equipment
      • Performance
      • Company News
      • Innovation
      • Outlook
      • Personnel Changes
    • GE Energy
      • Table GE Energy
      • Corporate Background
      • Product Portfolio
        • Table GE Energy's Product and Brand Portfolio for CAES Equipment
      • Performance
      • Company News
      • Innovation
      • Outlook
      • Personnel Changes
    • MAN Turbo
      • Table MAN Turbo
      • Corporate Background
      • Product Portfolio
        • Table MAN Turbo's Product and Brand Portfolio for CAES Equipment
      • Performance
      • Company News
      • Innovation
      • Outlook
      • Personnel Changes
    • Siemens Energy
      • Table Siemens Energy
      • Corporate Background
      • Product Portfolio
      • Performance
      • Company News
      • Innovation
      • Outlook
      • Personnel Changes
    • SolarCAT
      • Table SolarCAT
      • Corporate Background
      • Product Portfolio
      • Company News
    • SSS Gears
      • Table SSS Gears
      • Corporate Background
      • Product Portfolio
      • Performance
    • Struthers Wells
      • Table Struthers Wells
      • Corporate Background
      • Product Portfolio
      • Performance
      • Company News
      • Innovation
      • Outlook
      • Personnel Changes
    • SustainX
      • Table SustainX
      • Corporate Background
      • Product Portfolio
      • Performance
  • End Users
    • Scope
    • CAES End Users and Operators
      • Public Utilities
      • Independent Power Producers
    • Summary
  • Contact Information for Select CAES Suppliers and Technical Experts

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