Unit- 3

CO-3 Understand Power distribution sector framework with different loads and generating
sources.

Substation automation

A substation automation system is a collection of hardware and software components that are
used to monitor and control an electrical system, both locally and remotely. A substation
automation system also automates some repetitive, tedious and error-prone activities to increase
the overall efficiency and productivity of the system.

Traditional substations:-

High availability and constant operation of an electrical substation has always been the focus of
an electrical company. More faults mean more interruption of service to clients and it translates
to less revenue that is not desirable to any company. From the early age of electrical systems,
engineers and operators have always been interested in collecting useful information on different
devices in a substation so they can better evaluate the health of their system, predict potential
problems and – in case of a fault – to analyze and troubleshoot the problem as soon as possible to
protect their high values assets and to improve their continuous service to their clients

Early substations consisted of mechanical relays and meters that barely supported recording and
had no means of communication. Fault recorders were capturing information mainly in the form
of paper charts, so reading and analyzing the information was not a straightforward process.

Lack of communication caused any maintenance or troubleshooting to be costly and lengthy

because personnel had to be sent to substations that were often far away and hard to reach.

Modern substations:-

With the introduction of microprocessor technology, digital protection and control devices
became more [Link] electronic devices (IEDs) being implemented in substations
today contain valuable information, both operational and non-operational, needed by many user
groups within the utility. An IED is any device that incorporates one or more processors with the
capability to receive or send data/control from or to an external source (e.g., electronic multi
function meters, digital relays, controllers). IED technology can help utilities improve reliability,
gain operational efficiencies, and enable asset management programs including predictive
maintenance, life extensions and improved planning.

IEDs are a key component of substation integration and automation technology. Substation
integration involves integrating protection, control, and data acquisition functions into a minimal
number of platforms to reduce capital and operating costs, reduce panel and control room space,
and eliminate redundant equipment and databases. Automation involves the deployment of
substation and feeder operating functions and applications ranging from supervisory control and
data acquisition (SCADA) and alarm processing to integrated volt/var control in order to
optimize the management of capital assets and enhance operation and maintenance (O&M)
efficiencies with minimal human intervention.

IEDs facilitate the exchange of both operational and non-operational data. Operational data, also
called supervisory control and data acquisition (SCADA) data, are instantaneous values of power
system analog and status points such as volts, amps, MW, MVAR, circuit breaker status, switch
position. This data is time critical and is used to monitor and control the power system (e.g.,
opening circuit breakers, changing tap settings, equipment failure indication, etc.). Non-
operational data consists of files and wave forms such as event summaries, oscillographic event
reports, or sequential events records, in addition to SCADA-like points (e.g., status and analog
points) that have a logical state or a numerical value. This data is not needed by the SCADA
dispatchers to monitor and control the power system.

The ABCs of Substation Automation

Substation automation is the act of automatically controlling the substation via instrumentation
and control devices. Substation automation refers to using data from Intelligent Electronic
Devices (IED’s), control and automation capabilities within the substation, and control
commands from remote users using SCADA to control power-system (switch yard) devices.
Substation automation system is commonly used to control, protect and monitor a substation.
However, over the years advances in electronics, information and communications technology
have brought about sweeping changes in the way substations are operated. The advent of
software-based substation automation systems connected by serial links rather than rigid parallel
copper wiring gradually became the norm rather than the exception. Though successful and
widely accepted, these systems were based on either the manufacturers’ own proprietary
communication solutions or the defined use of communication standards from other application
domains, such as DNP3 or IEC 60870-5-104.

Substation Automation (SA) is a system to enable an electric utility to remotely monitor, control
and coordinate the distribution components installed in the substation. SAS is based on a
decentralized architecture and on a concept of bay oriented and distributed intelligence, for
safety and availability reasons.

The SAS layout is structured in three levels:

[Link] level

[Link] level

[Link] level
Station Level:-

A redundant PC based HMI enables local station control through the software package, which
contains an extensive range of SCADA functions. The station level contains the station-oriented
functions, which cannot be realized at bay level, e.g. alarm list or event list related to the entire
substation, gateway for the communication with remote control centers. A dedicated master
clock for the synchronization of the entire system shall be provided.

Bay Level:-

A bay comprises of circuit breaker and associated isolators, earth switches and instrument
transformers. At bay level, the IEDs provide all bay level functions such as control (command
outputs), monitoring (status indications, measured values) and protection. The IEDs are directly
connected to the switch gear without any need for additional interposing or transducers. Each
bay control IED is independent of the others and its functioning is not affected by any fault
occurring in any of the other bay control units of the station.

Process Level:-

It consists of all the switch yard devices which are hardwired using copper cables and use fiber
optic cables to connect the bay level IED’s used for control and protection.

Substation information collection:--

Substation information is collected via communication protocols, physical communication and

other substation technologies.

Communication protocols:- A communication protocol defines a set of rules for transmitting

data between two or more communication parties. Protocols have been developed to serve
various purposes based on specific requirements of that application.
Physical communication:- In modern substations, most devices communicate via ethernet links.
Data from different devices is sent to the control centers via various communication mediums.
Utilities generally prefer to install their own inter-sub communication infrastructure using fiber-
optic links or radio mesh systems but in some cases, especially in remote areas or smaller
substations, using cellular modems becomes more practical. Although using a public
infrastructure such as cellular networks can reduce maintenance costs, it also raises concerns
about security and availability.

Substation technologies:- As IEDs improve and implement more functions, new applications
can be developed to better leverage these new capabilities. With more accurate and up-to-date
information from system elements, IEDs can provide users with better insight on system
operation and general health. Substation technologies like Redundancy, time stamping, time
synchronization, logs are also critical in a Substation automation system.

Substation automation elements

Different components are used in a substation automation control system to collect information
on various parameters of the system, to monitor them and – in a higher level – to analyze this
information and make decisions based on the outcome of the analysis. Although some devices
often cross the line between control and protection systems, they can generally be categorized
into these five groups:

Gateway:- Gateways are initially employed to collect information from serial devices and make
this information available for a remote user, but they also include support for more functions that
are required in a substation like Protocol translation,Data concentration, Data distribution,Logic
processing. A typical modern gateway has a modular design and can host multiple serial and
Ethernet ports in fiber or copper. Its internal storage has adequate space to collect thousands of
files and it supports sophisticated protocols and time synchronization methods.

Distributed I/O:- A distributed I/O device can convert a limited number of Input/Outputs into
digital values and communicate those values via a standard protocol through serial or Ethernet
links.

IEDs (protection relay, smart meters):- An IED (Intelligent Electronic Device) is a

microprocessor-based device with some processing and communication capabilities. The biggest
category of IEDs in a substation is protective relays. This device can receive information from
CTs, PTs or other type of sensors, make control or protection decisions based on some
algorithms and issue commands to other devices such as breaker and switches. Although sensor
signals are still mainly in hardwired form, modern IEC 61850-based substations can
communicate digital information between sensors and relays using sample values or GOOSE
protocols. A digital relay can also generate and save log, event and oscillography files. Digital
meters are another type of IED that can measure and record main system parameters and
communicate them to a control center.

SCADA system:- A Supervisory Control and Data Acquisition (SCADA) system is an

enterprise-level software whose main task is to monitor and control an electrical grid system
based on the information it collects from the substations within that system. A SCADA system is
normally installed in a control room where operators can consistently monitor the overall health
and function of the electric system. To provide enough information for an operator, a SCADA
system supports a range of features and functions such as a single-line diagram and a historian.

Substation HMI:- A Human Machine Interface (HMI), is a stripped-down version of a SCADA

system that is used locally in a substation – especially during commissioning and maintenance.
Unlike a SCADA system, an HMI only monitors local devices and generally doesn’t have a
historian capability. An operator can use a HMI system for operating the devices in the system or
to verify the current status of the system. A HMI could run on a local computer substation, but a
better solution would be to use a modern gateway that supports a built-in HMI function. The
HMI function on such a gateway would be locally accessible via a touchscreen monitor directly
connected to the gateway or locally/remotely through a web connection. This approach
eliminates the use of a substation computer – resulting in less hardware and software
maintenance considering that a computer running on Windows OS needs regular patch
management.

Substation cyber security

During the early years of digital control systems, cyber security was not a concern. Most of the
communication was done using dedicated methods such as telephone lines and modems that
where not visible to outsiders. Security was not even an issue in the initial design of the internet
infrastructure. As the internet became available to the public, more vulnerabilities were detected.
Newer technologies have attempted to address the problems caused by a shared link accessible to
anonymous users.

A good security infrastructure should make sure the right information will be accessible only to
the right people at any time using proper authentication, authorization and access control. This
can be achieved by using methods like User-access management, Secure remote access and
VPN, Password management, Activity log and trace and Firewall, malware protection.

Substation Automation System Key Benefits

 Automatic supervision of interlocks.

 Graphical presentations of safety procedures.
 Local & global alarm & warnings.
 Detect fault location - useful for distribution systems.
 Equipment diagnostics.
 Intelligent interlocking system.
 Diagnostics of disturbances.
Geographic information system (GIS)

A geographic information system (GIS) is a computer system for capturing, storing, checking,
and displaying data related to positions on Earth’s surface. By relating seemingly unrelated data,
GIS can help individuals and organizations better understand spatial patterns and relationships.

GIS technology is a crucial part of spatial data infrastructure, which the White House defines as
“the technology, policies, standards, human resources, and related activities necessary to acquire,
process, distribute, use, maintain, and preserve spatial data.”

GIS can use any information that includes location. The location can be expressed in many
different ways, such as latitude and longitude, address, or ZIP code.

Many different types of information can be compared and contrasted using GIS. The system can
include data about people, such as population, income, or education level. It can include
information about the landscape, such as the location of streams, different kinds of vegetation,
and different kinds of soil. It can include information about the sites of factories, farms, and
schools, or storm drains, roads, and electric power lines.

With GIS technology, people can compare the locations of different things in order to discover
how they relate to each other. For example, using GIS, a single map could include sites that
produce pollution, such as factories, and sites that are sensitive to pollution, such
as wetlands and rivers. Such a map would help people determine where water supplies are most
at risk.

Data Capture

Data Formats

GIS applications include both hardware and software systems. These applications may
include cartographic data, photographic data, digital data, or data in spreadsheets.

Cartographic data are already in map form, and may include such information as
the location of rivers, roads, hills, and valleys. Cartographic data may also include survey
data and mapping information that can be directly entered into a GIS.

Photographic interpretation is a major part of GIS. Photo interpretation involves analyzing aerial
photographs and assessing the features that appear.

Digital data can also be entered into GIS. An example of this kind of information is
computer data collected by satellites that show land use—the location of farms, towns,
and forests.

Remote sensing provides another tool that can be integrated into a GIS. Remote sensing includes
imagery and other data collected from satellites, balloons, and drones.
Finally, GIS can also include data in table or spreadsheet form, such
as population demographics. Demographics can range from age, income, and ethnicity to recent
purchases and internet browsing preferences.

GIS technology allows all these different types of information, no matter their source or original
format, to be overlaid on top of one another on a single map. GIS uses location as the key index
variable to relate these seemingly unrelated data.

Putting information into GIS is called data capture. Data that are already in digital form, such as
most tables and images taken by satellites, can simply be uploaded into GIS. Maps, however,
must first be scanned, or converted to digital format.

The two major types of GIS file formats are raster and vector. Raster formats are grids of cells
or pixels. Raster formats are useful for storing GIS data that vary, such as elevation or satellite
imagery. Vector formats are polygons that use points (called nodes) and lines. Vector formats are
useful for storing GIS data with firm borders, such as school districts or streets.

Spatial Relationships

GIS technology can be used to display spatial relationships and linear networks. Spatial
relationships may display topography, such as agricultural fields and streams. They may also
display land-use patterns, such as the location of parks and housing complexes.

Linear networks, sometimes called geometric networks, are often represented by roads, rivers,
and public utility grids in a GIS. A line on a map may indicate a road or highway. With GIS
layers, however, that road may indicate the boundary of a school district, public park, or
other demographic or land-use area. Using diverse data capture, the linear network of a river may
be mapped on a GIS to indicate the stream flow of different tributaries.

GIS must make the information from all the various maps and sources align, so they fit together
on the same scale. A scale is the relationship between the distance on a map and the actual
distance on Earth.

Often, GIS must manipulate data because different maps have different projections.
A projection is the method of transferring information from Earth’s curved surface to a flat piece
of paper or computer screen. Different types of projections accomplish this task in different
ways, but all result in some distortion. To transfer a curved, three-dimensional shape onto a flat
surface inevitably requires stretching some parts and squeezing others.

A world map can show either the correct sizes of countries or their correct shapes, but it can’t do
both. GIS takes data from maps that were made using different projections and combines them so
all the information can be displayed using one common projection.

GIS Maps
Once all the desired data have been entered into a GIS system, they can be combined to produce
a wide variety of individual maps, depending on which data layers are included. One of the most
common uses of GIS technology involves comparing natural features with human activity.

For instance, GIS maps can display what man-made features are near certain natural features,
such as which homes and businesses are in areas prone to flooding.

GIS technology also allows users to “dig deep” in a specific area with many kinds of
information. Maps of a single city or neighborhood can relate such information as
average income, book sales, or voting patterns. Any GIS data layer can be added or subtracted to
the same map.

GIS maps can be used to show information about numbers and density. For example, GIS can
show how many doctors there are in a neighborhood compared with the area’s population.

With GIS technology, researchers can also look at change over time. They can
use satellite data to study topics such as the advance and retreat of ice cover in polar regions, and
how that coverage has changed through time. A police precinct might study changes
in crime data to help determine where to assign officers.

One important use of time-based GIS technology involves creating time-lapse photography that
shows processes occurring over large areas and long periods of time. For example, data showing
the movement of fluid in ocean or air currents help scientists better understand
how moisture and heat energy move around the globe.

GIS technology sometimes allows users to access further information about specific areas on
a map. A person can point to a spot on a digital map to find other information stored in the GIS
about that location. For example, a user might click on a school to find how many students
are enrolled, how many students there are per teacher, or what sports facilities the school has.

GIS systems are often used to produce three-dimensional images. This is useful, for example,
to geologists studying earthquake faults.

GIS technology makes updating maps much easier than updating maps created manually.
Updated data can simply be added to the existing GIS program. A new map can then be printed
or displayed on screen. This skips the traditional process of drawing a map, which can be time-
consuming and expensive.

GIS Jobs

People working in many different fields use GIS technology. GIS technology can be used for
scientific investigations, resource management, and development planning.

Many retail businesses use GIS to help them determine where to locate a new
store. Marketing companies use GIS to decide to whom to market stores and restaurants, and
where that marketing should be.
Scientists use GIS to compare population statistics to resources such as drinking
water. Biologists use GIS to track animal-migration patterns.

City, state, or federal officials use GIS to help plan their response in the case of a natural
disaster such as an earthquake or hurricane. GIS maps can show these officials
what neighborhoods are most in danger, where to locate emergency shelters, and
what routes people should take to reach safety.

Engineers use GIS technology to support the design, implementation, and management of
communication networks for the phones we use, as well as the infrastructure necessary
for internet connectivity. Other engineers may use GIS to develop road networks and
transportation infrastructure.

There is no limit to the kind of information that can be analyzed using GIS technology.

IED — Intelligent Electronic Device

In the power sector, intelligent electronic devices (IED) are microprocessor based power system
equipment, such as circuit breakers, transformers and capacitor banks, providing control and
automation functions.
IEDs receive and process data from sensors and other equipment to issue control commands or
adjust tap poisitions in order to prevent failures and maintain the desired voltage level.
types of IEDs include protective relays, circuit breaker, capacitor bank switches,
recloser controllers and voltage regulators.
communication ports and standard communication protocol technology
(e.g. DNP3, IEC 104 or IEC 61850) to communicate directly with SCADA systems or RTUs.
modern protection relays, which use a
microprocessor to perform several protective, control and related functions.
IEC 61850 standard for substation automation,
which provides full interoperability and enables advanced protection and communication
functions.
IEDs are used as a new alternative to, or a complement
to traditionally used remote terminal units (RTUs).

Intelligent Electronic Devices (IEDs) are microprocessor-based control devices designed to

automate and control the operation of power system equipment like transformers, circuit
breakers, disconnectors, capacitor banks, etc. IEDs are the fundamental components of a smart
grid system that revolutionize the management of electric grid and improve the efficiency and
reliability of the system.

In this chapter, we will explain the concept of intelligent electronic devices along with their
benefits and applications in smart grid technology.
 What are Intelligent Electronic Devices (IEDs)?

Intelligent Electronic Devices (IEDs) are microprocessor-based control devices designed to

automate and control the operations of different power system equipment like circuit breakers,
transformers, capacitor banks, isolators, and more. IEDs use various advanced control algorithms
and communication technologies to monitor, control, and protect equipment of the power
system.

These devices receive data from various sensors connected across the grid and process them to
generate control signals. These control commands are then sent to field devices to perform an
appropriate action and maintain the grid stability. Since IEDs are equipped with their own
microprocessor, hence they can perform complex calculations at a very fast speed and enable
decision making in real-time that in turn improves the operational efficiency of the grid.

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Types of Intelligent Electronic Devices

There are various types of IEDs are used in smart grid systems, but the following are some major
of them −

 Protective Relays − These IEDs are responsible for detecting and isolating faults in the grid.
 Voltage Regulators − These IEDs are used to automatically regulate the system voltage to
maintain it within specified limits.
 Recloser Controllers − These are IEDs responsible for automatically restore the power supply
after occurrence of a fault or abnormal conditions in the grid.
 Capacitor Bank Switches − These IEDs are integrated into the smart grid system to regulate the
reactive power flow in the system and maintain the power factor within the specified limit.
What is battery storage?
Battery storage technologies are essential to speeding up the replacement of fossil fuels
with renewable energy. Battery storage systems will play an increasingly pivotal role
between green energy supplies and responding to electricity demands.
Battery storage, or battery energy storage systems (BESS), are devices that enable energy
from renewables, like solar and wind, to be stored and then released when the power is
needed most.

Lithium-ion batteries, which are used in mobile phones and electric cars, are currently the
dominant storage technology for large scale plants to help electricity grids ensure a
reliable supply of renewable energy. We’ve begun deploying this technology with heavier
equipment, working with Viridi Parente – a company that makes battery storage systems
for industrial, commercial and residential buildings.

Why is battery storage important and what are its benefits?

Battery storage technology has a key part to play in ensuring homes and businesses can be
powered by green energy, even when the sun isn’t shining or the wind has stopped
blowing.

For example, the UK has the largest installed capacity of offshore wind in the world, but
the ability to capture this energy and purposefully deploy it can increase the value of this
clean energy; by increasing production and potentially reducing costs.

Every day engineers at National Grid and electricity grids worldwide must match supply
with demand. Managing these peaks and troughs becomes more challenging when the
target is to achieve net zero carbon production. Fossil-fuel fired plants have traditionally
been used to manage these peaks and troughs, but battery energy storage facilities can
replace a portion of these so-called peaking power generators over time.

The UK government estimates technologies like battery storage systems – supporting the
integration of more low-carbon power, heat and transport technologies – could save the
UK energy system up to £40 billion ($48 billion) by 2050, ultimately reducing people’s
energy bills.

Prescott Hartshorne, a Director at National Grid Ventures in the US, says: “Storage
enables further renewable generation, both from an operational and reliability perspective.
It’s also a key piece of our utility customers’ ongoing evolution and transition to
renewables.”
How exactly does a battery storage system work?

Battery energy storage systems are considerably more advanced than the batteries you
keep in your kitchen drawer or insert in your children’s toys. A battery storage system can
be charged by electricity generated from renewable energy, like wind and solar power.

Intelligent battery software uses algorithms to coordinate energy production and

computerised control systems are used to decide when to store energy or to release it to
the grid. Energy is released from the battery storage system during times of peak demand,
keeping costs down and electricity flowing.

This article is concerned with large-scale battery storage systems, but domestic energy
storage systems work on the same principles.

What renewable energy storage systems are being developed?

Storage of renewable energy requires low-cost technologies that have long lives –
charging and discharging thousands of times – are safe and can store enough energy cost
effectively to match demand.

Lithium-ion batteries were developed by a British scientist in the 1970s and were first
used commercially by Sony in 1991, for the company’s handheld video recorder. While
 they’re currently the most economically viable energy storage solution, there are a number
of other technologies for battery storage currently being developed. These include:

 Compressed air energy storage: With these systems, generally located in large chambers,
surplus power is used to compress air and then store it. When energy is needed, the
compressed air is released and passes through an air turbine to generate electricity.
 Mechanical gravity energy storage: One example of this type of system is when energy is
used to lift concrete blocks up a tower. When the energy is needed, the concrete blocks are
lowered back down, generating electricity using the pull of gravity.
 Flow batteries: In these batteries, which are essentially rechargeable fuel cells, chemical
energy is provided by two chemical components dissolved in liquids contained within the
system and separated by a membrane.
 Smart batteries
Smart batteries can measure voltage and current to determine the charge level and state of
health of the cells. They can also communicate with a smart battery charger and a smart energy
user.
 Battery Energy Storage Systems (BESS)
BESSs are rechargeable batteries that store energy from the power grid, power stations, or
renewable energy sources. They can be used to balance the electric grid, provide backup power,
and improve grid stability.
 Benefits of battery storage
Battery storage can help with:
 Reducing carbon footprint: Battery storage can help reduce greenhouse gas emissions by
charging storage facilities with energy from renewable sources.
 Reducing electricity bills: Battery storage can help reduce electricity bills by storing cheap energy
from the grid.
 Meeting peak energy demands: Battery storage can help meet peak energy demands in cities,
reducing strain on the grid and minimizing spikes in electricity costs.
 Preventing outages: Battery storage can help prevent outages during extreme heat or cold.

Smart energy storage

Smart energy storage can help households maximize their self-consumption of solar generated
electricity, and minimize their imports during expensive 'peak' times

Superconducting magnetic energy storage (SMES) systems can be a key part of smart grids
because they can:
 Improve power quality: SMES systems can help with short-term power storage to improve
power quality.
 Handle power surges: SMES systems can quickly and precisely deliver and stabilize power,
making them ideal for applications like semiconductor manufacturing and medical facilities.
 Overcome grid faults: SMES systems can help overcome grid faults.
SMES systems work by storing energy in a magnetic field created by a superconducting coil
that's been cooled to a low temperature. Here are some other features of SMES systems:
 Efficiency: SMES systems have an end-to-end efficiency of nearly 100%.
 Response times: SMES systems have fast response times for charging and discharging.
 Unlimited cycles: Once energized, the current in the coil will not decay, so the stored energy can
be used indefinitely.
 Minimal energy loss: SMES systems lose less electricity during the energy storage process than
other methods.
A typical SMES system includes: A superconducting coil, A power conditioning system, and A
cryogenically cooled refrigerator.
Pumped storage hydropower (PSH)

Pumped storage hydropower (PSH) is a type of hydroelectric energy storage. It is a configuration

of two water reservoirs at different elevations that can generate power as water moves down
from one to the other (discharge), passing through a turbine. The system also requires power as it
pumps water back into the upper reservoir (recharge). PSH acts similarly to a giant battery,
because it can store power and then release it when needed. The Department of Energy's
"Pumped Storage Hydropower" video explains how pumped storage works.

The first known use cases of PSH were found in Italy and Switzerland in the 1890s, and PSH
was first used in the United States in 1930. Now, PSH facilities can be found all around the
world! According to the 2023 edition of the Hydropower Market Report, PSH currently accounts
for 96% of all utility-scale energy storage in the United States. America currently has 43 PSH
plants and has the potential to add enough new PSH plants to more than double its current PSH
capacity.

Open-Loop Versus Closed-Loop Pumped Storage Hydropower

PSH can be characterized as open-loop or closed-loop. Open-loop PSH has an ongoing

hydrologic connection to a natural body of water. With closed-loop PSH, reservoirs are not
connected to an outside body of water.
Open-loop pumped storage hydropower systems connect a reservoir to a naturally flowing
water feature via a tunnel, using a turbine/pump and generator/motor to move water and
create electricity.

Closed-loop pumped storage hydropower systems connect two reservoirs without flowing water
features via a tunnel, using a turbine/pump and generator/motor to move water and create
electricity.

The Water Power Technologies Office (WPTO) invests in innovative PSH technologies and
research to understand and determine the value of the potential benefits of existing and
prospective advanced PSH facilities. Through the HydroWIRES Initiative, WPTO is currently
working on projects designed to evaluate and expand hydropower and PSH’s contribution to grid
resilience and reliability.
Energy storage provides a variety of socio-economic benefits and environmental protection
benefits. Energy storage can be performed in a variety of ways. Examples are: pumped hydro
storage, superconducting magnetic energy storage and capacitors can be used to store energy.
Each technology has its advantages and disadvantages. One essential differentiating
characteristic of the different technologies is the amount of energy the technology can store and
another is how fast this energy can be released. This technology description focuses on
Compressed Air Energy Storage (CAES).

What is Compressed Air Energy Storage (CAES) technology and how does it work?

The technological concept of compressed air energy storage (CAES) is more than 40 years old.
Compressed Air Energy Storage (CAES) was seriously investigated in the 1970s as a means to
provide load following and to meet peak demand while maintaining constant capacity factor in
the nuclear power industry. Compressed Air Energy Storage (CAES) technology has been
commercially available since the late 1970s. One commercial demonstration CAES plant has
been operating successfully for over 24 years, and another has been operating successfully for 11
years. In addition, many other CAES plants have been investigated via siting, economic
feasibility, or design studies (EPRI, 2002).

The basic functioning of Compressed Air Energy Storage (CAES) is explained in Figure 1, while
the introduction image above shows an artist's rendering of a CAES plant integrated with a wind
turbine farm. Essentially, the term compressed air energy storage outlines the basic functioning
of the technology. In times of excess electricity on the grid (for instance due to the high power
delivery at times when demand is low), a compressed air energy storage plant can compress air
and store the compressed air in a cavern underground. At times when demand is high, the stored
air can be released and the energy can be recuperated.

Because low cost electricity is stored at low demand times, and electricity is created, through
releasing the stored energy, at high demand times at high prices, storing energy is not only
motivated by environmental protection benefits, but is also strongly motivated by economic
benefits the technology provides. In addition, the technology provides energy market support and
socio-economic benefits. The essential components of a compressed air energy storage plant are
illustrated as well in Figure 1.
Figure 1: Basic functioning of a Compressed Air Energy Storage facility

The compressed air is often stored in appropriate underground mines or caverns created inside
salt rocks. The ground surrounding the cavern needs to be as air-tight as possible, which prevents
the loss of energy through leakage. Storage in mined caverns (caverns excavated specifically for
compressed air energy storage) is used for large scale CAES applications and it takes about 1.5
to 2 years to create such a cavern by dissolving salt. However, in addition to large scale
facilities, compressed air energy storage can also be adapted for use in distributed, small scale
operations through the use of high-pressure tanks or pipes (APS, 2007)

In addition to large scale facilities, compressed air energy storage can also be adapted for use in
distributed, small scale operations through the use of high-pressure tanks or pipes (APS, 2007).
Figure 2 illustrates a small-scale application of compressed air energy storage. The process is
essentially the same as for large scale compressed air energy storage technology, it is just that the
reservoir is smaller and above ground. The smaller reservoir limits the amount of electricity that
can be stored with small scale technology.
Figure 2: Illustration of a small scale compressed air storage system.

When the plant discharges, it uses the compressed air to operate the combustion turbine
generator. Natural gas is burned during plant discharge, in the same fashion as a conventional
turbine plant. However, during discharge, the combustion turbine in a CAES plant uses all of its
mechanical energy to generate electricity; thus the system is more efficient. (Schoenung, 2001)

Feasibility of Compressed Air Energy Storage (CAES) and operational necessities

As mentioned, the CAES technology concept is more than forty years old. The first and longest
operating CAES facility in the world is near Huntorf, Germany, The 290- MWe Huntorf plant
has operated since 1978, functioning primarily for cyclic duty, ramping duty, and as a hot
spinning reserve for the industrial customers in northwest Germany. Recently this plant has been
successfully leveling the variable power from numerous wind turbine generators in Germany. In
the U.S. a 110 MWe plant has been constructed near McIntosh, Alabama and has been in
operation since 1991. A third CAES facility is being planned in Norton, Ohio, USA. This facility
will be the largest ever with a 2700 MWe capacity which will compress air to 1500 pounds per
square inch (psi) in an existing limestone mine some 2200 feet under ground.

Several other CAES plants have been designed and/or investigated but were not built for a
variety of reasons (EPRI, 2002). Several examples are:

1. During the Soviet era, a 1050 MWe CAES plant using salt cavern geology formations for
the air storage was proposed for construction in the Donbas area of Russia. Undeground
geological development of the air storage was initiated. However, when the Soviet Union
collapsed, the construction was terminated.
2. In Israel plans were developed for several CAES facilities, including a 3 x 100 MWe
CAES facility using fractured hard rock aquifers.
3. Luxembourg designed a 100 MWe CAES plant sharing an upper reservoir for a water
compensation system with a pumped hydro plant located in a hard rock cavern at the
Viendan site.
 4. Soyland Electric Cooperative, contracted for the construction of a 220 MWe hard rock
based plant. Plant engineering and the cavern sample drilling/rock analysis was
completed and all major equipment had been purchased when the project was terminated
due to non-technical considerations.

While most projects were not completed, the examples above show that CAES technology is
clearly beyond the developmental phase. In addition, the technology is capable of establishing
large scale energy storage, ranging up to 1000 MWe. Table 1 illustrates the development phase
of several energy storage technologies. The APS panel on public affairs (2007) recommends
further research and development efforts in CAES technology in the fields of establishing
additional demonstration projects and computer modeling (APS, 2007).

Table 1. Development status of several key energy storage technologies. Source: APS, 2007

Pre-commercial Demonstration
Commercial Developmental stage
prototype stage

CAES

Zinc-bromine battery
Lithium-ion battery for grid
Lead-acid battery
applications
Pumped hydro
Flywheel (as grid
device)
NI-Cad battery
SMES (as grid device)
Flywheels for power
quality
Vanadium redox
Flywheel (as load
battery Electrochemical capacitors
applications at the device)
consumer site

Electrochemical Other advanced batteries

Micro - SMES (as
capacitor
load

device)

As illustrated in Figure 3, CAES technology is relatively slow in discharging the stored power
capacity, but has among the highest system power rating together with batteries and pumped
hydro storage [Link], the amount of energy this technology can store in a large
scale system is among the highest of the energy storage technologies currently available. Being
relatively slow in the discharge of the stored energy, this technology can provide energy market
support up to several hours.

Figure 3: System power rating and discharge times of several key energy storage technologies.
Source: APS, 2007

Operational necessities of Compressed Air Energy Storage (CAES)

Also illustrated in Figure 1, for a conventional CAES plant cycle the major components include
(EPRI, 2002):

 A motor/generator with clutches on both ends (to engage/disengage it to/from the

compressor train, the expander train, or both).
 Multi-stage air compressors with intercoolers to reduce the power requirements needed
during the compression cycle, and with an aftercooler to reduce the storage volume
requirements.
 An expander train consisting of high- and low-pressure turboexpanders with combustors
between stages
 Control system (to regulate and control the off-peak energy storage and peak power
supply, to switch from the compressed air storage mode to the electric power generation
mode, or to operate the plant as a synchronous condenser to regulate VARS on the grid).
 Auxiliary equipment (fuel storage and handling, cooling system, mechanical systems,
electrical systems, heat exchangers).
 Underground or aboveground compressed air storage, including piping and fittings.
Undergound storage is often performed in aquifers or mined caverns, while aboveground
air storage is executed within specially designed holding tanks.
Several key features and limitations of Compressed Air Energy Storage (EPRI, 2002).

1. The CAES technology can be easily optimized for specific site conditions and
economics.
2. CAES is a proven technology and can be delivered on a competitive basis by a number of
suppliers.
3. CAES plants are capable of black start (further discussed below). Both the Huntorf and
McIntosh plants have blackstart capability that is occasionally required.
4. CAES plants have fast startup time. If a CAES plant is operated as a hot spinning reserve,
it can reach the maximum capacity within a few seconds. The emergency startup times
from cold conditions at the Huntorf and McIntosh plants are about 5 minutes. Their
normal startup times are about 10 to 12 minutes

According to the 2002 EPRI study, the main reason for the currently limited market penetration
of this technology is likely to be the lack of awareness of this option by utility planners. In
addition, the underground geology is likely perceived as a risk issue by utilities. Moreover, very
few engineers are aware of the fact that CAES sites are actually relatively common. The 2002
EPRI study notes that approximately 80 % of the United States contains suitable CAES sites.
Due to these reasons, the market potential for CAES is not used to its full capacity.

Table 2 illustrates some of the common parameter ranges for CAES plants.

Table 2. key features of a CAES plant. Source: EPRI, 2002

Feature Parameter range

Space requirements A 100 MWe plant requires approximately 1 acre

Effective efficiency 85 %

Lifetime of the plant About 30 years

Maintenance Same as a simple cycle combustion engine: about US$0.30/MWh

requirements generated

Environmental impact Minimal

Auxiliary equipment
Water if wet cooling is used; no water if dry cooling fans are used
needs

Power conditioning needs None

Status of Compressed Air Energy Storage (CAES) technology and its future market

potential
As mentioned, several CAES facilities are already operational but several limitations are
currently limiting the market penetration of this technology. However, the Compressed Air
Energy Storage (CAES) technology future market potential is substantial. This is largely due to
the fact that renewable energies are expected to realize an increasing market share in the future.
Being intermittent sources, energy storage is an essential aspect for high penetration rates of
technologies such as wind and solar energy.

The APS (2007) study notes that CAES seems to be a natural partner to the wind farms currently
under development. This is due to the characteristics of CAES in that it can operate on a short
enough time scale to smooth out fluctuations in the energy grid caused by wind fluctuations, in
that it meets the storage capacity required by wind farms, and that the technology is applicable
more uniformly across the countries compared to pumped hydro storage (which requires
elevation). In addition, the APS (2007) study notes that the CAES technology and the pumped
hydro storage technology are very suitable for load management as long as the geology is
available and response time in the order of minutes is acceptable.

How Compressed Air Energy Storage (CAES) could contribute to socio-economic

development and environmental protection

A California Public Utilities Commission (CPUC) 2010 study details on the economic benefits
of CAES technology. The study notes that economic benefits mainly occur from energy bill
savings, lower future energy storage costs as the market matures and employment and other
economic growth opportunities.

Energy storage enables customers to change when they draw power from the grid to meet their
demand. For customers on dynamic rates energy storage allows energy arbitrage opportunities.
In other words, customers that pay flexible rates based on the time of purchase of electricity
energy storage allows for energy bill savings due to shifting the timing when energy is drawn
from the grid. The energy storage system charges when the cost of energy is low and discharges
when the cost of energy is high. As such, the installation is able to provide economic benefits to
its owner.

It is expected that the energy storage market will mature, especially driven by the increasing
implementation of intermittent renewable energy technologies. As such, while the energy storage
technology market is currently an emerging market, it is expected that costs will be lower in the
future as a result of learning-by-doing. Economies of scale will be developed and additional
research and development is also expected to further lower the costs of energy storage
technologies. Adding the expected rise in energy costs over time, energy storage technologies are
likely to become important technologies in the future. Policymakers will need to consider these
market transformations.

Energy storage technologies will provide employment and other economic growth
opportunities. Energy storage technologies are currenlty not uniformly deployed, but will create
jobs in manufacturing and installation as the technology market penetration expands. In addition,
through energy grid stabilitzation and smoothening, the technology is expected to support
economic growth objectives.

Socio-economic development is further supported through the technical benefits the energy
storage technology offers. A 2008 National Energy Technology Laboratory study on the market
of emerging electric energy storage systems provides extensive details on the technical benefits
provided by energy storage technologies in general, and for emerging electric energy storage
systems in particular. This section focuses on the technical benefits provided by CAES
technology, although several benefits also apply to other energy storage technologies.

Energy storage technologies, through drawing energy and supplying energy to the grid at chosen
times, can support grid stabilization. The energy grid can destabilize after a disturbance, and the
stored energy can support stabilization efforts. For instance, in the case of a high power peak in
the grid, energy storage technologies can store the energy and release it more gradually into the
grid. Alternatively, in the case of a sudden drop in power on the grid, energy storage
technologies can provide energy to the grid. In the case of CAES technology, this benefit is only
really practical if the drop in power or the surge in power is expected to continue for longer time
periods as CAES technology is not very suitable for very fast discharges. Instead, CAES
technology can provide prolonged discharges. The NETL (2008) study notes that energy storage
technologies in general can remedy three forms of grid instability: rotor angle instability; voltage
instability and frequency excursions.

Energy storage technologies can be used to support the normal operations of the grid, and as
such provide grid operational support. Grid operational support can be divided in four types of
support operations:

1. Frequency regulation services: energy storage can be used to inject and absorb power to
maintain grid frequency in the face of fluctuations in generation and load.
2. Contingency reserves: at the transmission level, contingency reserve includes spinning
and supplemental reserve units, that provide power for up to two hours in response to a
sudden loss of generation or a transmission outage.
3. Voltage support: energy storage can support the injection or absorption of reactive power
into the grid to maintain system voltage within the optimal range. Energy storage systems
use power-conditioning electronics to convert the power output of the storage technology
to the appropriate voltage and frequency for the grid.
4. Black start: black start units provide the ability to start up from a shutdown condition
without support from the grid, and then energize the grid to allow other units to start up.
A properly sized energy storage system can provide black start capabilities.

Moreover, energy storage technologies can improve power quality and reliability. However,
since the vast majority of grid-related power quality events are voltage sags and interruptions
with durations of less than two seconds, CAES technology is not very suitable for this function.
Instead, superconducting magnetic energy storage (SMES) or capacitors are more suitable.

One function the Compressed Air Energy Storage (CAES) technology is very good at is load
shifting. Load shifting is achieved by storing energy during periods of low demand and releasing
the stored energy during periods of high demand. The NETL (2008) study notes that load
shifting comes in several different forms. The most common of these forms, in which CAES
technology can be suitably applied, is peak shaving. Peak shaving describes the use of energy
storage to reduce peak demand in an area. It is usually proposed when the peak demand for a
system is much higher than the average load, and when the peak demand occurs relatively rarely.
As such, capacity upgrades are very expensive as they permanently upgrade the grid's capacity in
order to tackle rare peak demand events. Peak shaving allows a utility to defer the investment
required to upgrade the capacity of the grid. The EPRI (2003) study notes that the economic
viability of energy storage for peak shaving depends on several factors, particularly the rate of
load growth. Fast load growth improves the economic viability of capacity upgrades as the rare
events are likely to become increasingly more common as load grows. In contrast, low load
growth improves the economic viability of energy storage technologies as the rare events need to
be addressed, and energy storage is suitable for addressing rare and infrequent peak demand
through peak shaving.

A key characteristic of energy storage technologies is the capacity to support the integration of
renewable energy sources. With wind power currently being the largest and fastest growing
renewable power source, and solar PV and CSP expected to play increasingly more substantial
roles in the energy grid, this is an important characteristic. The following applications for energy
storage technologies are described in the context of wind power. Similar applications also exist
for other renewables such as PV.

 Frequency and synchronous spinning reserve support: In grids with a significant share of
wind generation, intermittency and variability in wind generation output due to sudden
shifts in wind patterns can lead to significant imbalances between generation and load
that in turn result in shifts in grid frequency. Such imbalances are usually handled by
spinning reserve at the transmission level, but energy storage can provide prompt
response to such imbalances without the emissions related to most conventional
solutions. As mentioned, CAES technology is not very suitable for fast-discharge.
 Transmission Curtailment Reduction: Wind power generation is often located in remote
areas that are poorly served by transmission and distribution systems. As a result,
sometimes wind operators are asked to curtail their production, which results in lost
energy production opportunity, or system operators are required to invest in expanding
the transmission capability. An energy storage unit located close to the wind generation
can allow the excess energy to be stored and then delivered at times when the
transmission system is not congested. CAES technology is very suitable for this
application.
 Time Shifting: Wind turbines are considered as non-dispatchable resources. Energy
storage can be used to store energy generated during periods of low demand and deliver it
during periods of high demand. When applied to wind generation, this application is
sometimes called “firming and shaping” because it changes the power profile of the wind
to allow greater control over dispatch.

Environmental protection benefits occur due to the socio-economic benefits mentioned above.
Peak shaving and other technical benefits result in lower emissions of greenhouse gases and
other emissions, energy market support functions delay energy grid expansions which saves
natural resources, and the storage capacity provided by the technology delays energy power
supply expansions which saves both natural resources and reduces emissions from power
production. In addition, as renewables like wind increase as a percentage of the off-peak power
mix, the emissions benefits of EES will continue to grow.

Financial requirements and costs

The CAES plant is the only technology that can provide significant energy storage (in the
thousands of MWhs) at relatively low costs (approximately $400 to $500/kW ). The plant has
practically unlimited flexibility for providing significant load management at the utility or
regional levels.

The CAES cost curve is not straight because it has a significant per-kWh operating cost (it
requires natural gas fuel). While the other energy storage technologies' costs are almost
completely dependent on installed capacity, the CAES cost depends on both installed capacity
and the amount of energy that passes through storage (Schwyzer, 2006).

Capital costs
The capital cost of a CAES plant is a function of the storage medium, the plant capacity (power),
and the energy stored in the storage medium. (EPRI, 2002).

Table 3. CAES Plant Costs For Various Storage Media And Plant Configurations. Source:
EPRI, 2002

Storage Cost for power Cost for the energy Typical hours Total
Size
medium for related plant storage components of storage for capital costs
(MWe)
CAES plant components ($/kW) ($/kWh) a plant ($/kWe)

Salt 200 350 1 10 360

Porous media 200 350 0.10 10 351

Hard rock
200 350 30 10 650
(new cavern)

Surface piping 50 350 30 3 440

Operating costs
The 2002 EPRI study identifies the following rule of thumb for a generic CAES plant: The
operating cost per kWh delivered during power generation mode is 0.75 times that of the
incremental cost per kWh of off-peak power purchased during the compression mode, plus the
cost of the fuel (in $/MMBTU) times 4000 BTU/kWH generated.

Illustrated in a formula:
Cost of electricity generated ($/kWh) = (0.75) (Incremental cost of electricity purchased, $/kWh)
+ (Cost of fuel purchased, $/MMBtu) (4,000 Btu/kWh) / (1,000,000 Btu/MMBtu)

The factor “0.75” includes the ratio of generated electricity to purchased electricity and the
energy lost to pipe friction, air leakage, pressure regulation, and compressor/expander
component efficiencies. The heat rate of 4,000 Btu/kWh is typical for an expander-generator set
operating without the compressor during the generation mode.