Techno-economic analysis of advanced adiabatic compressed air energy storage system based on life cycle cost

Abstract Advanced adiabatic CAES (AA-CAES) is a new system proposed to improve the traditional CAES. It is an important direction for the future development of CAES and has important research value and exploration significance. However, there are few studies on the techno-economic of AA-CAES technology, and there is no specific feasible economic calculation method. In this paper, a novel model of techno-economic analysis for AA-CAES system is proposed based on the life cycle cost method. A 10MW/80  MW h AA-CAES concept system is used as the object. After calculating, the static construction cost of the AA-CAES system is about ¥66.79 million, the cost of per kW·h of electricity is from 0.501 to 0.686 ¥/(kW·h), and the average annual income is ¥21.74 million. And the sensitivity factors of the system, the electricity purchase price, electricity sale price and annual operating hours were further analyzed. When discussing the influence of unit capacity, the AA-CAES concept system with power of 20MW–100MW was selected as the control for calculation and analysis. Finally, based on the results of techno-economic analysis, the opinions on the further promotion and application of the AA-CAES system are proposed.