A review on the development of compressed air energy storage in China: Technical and economic challenges to commercialization

Abstract To reduce greenhouse gas emissions and the environmental impact of fossil fuels, China has become the world's largest country in electricity production from renewable energy. The intermittent nature of renewable energy poses challenges to the stability of the existing power grid. Compressed Air Energy Storage (CAES) that stores energy in the form of high-pressure air has the potential to deal with the unstable supply of renewable energy at large scale in China. This study provides a detailed overview of the latest CAES development in China, including feasibility analysis, air storage options for CAES plants, and pilot CAES projects. According to China's energy structure, the application of CAES is reviewed from the perspectives of grid regulation, energy generation, and demand side management. A cost-benefit analysis shows that promoting electricity trading market could enable CAES to realize high-level arbitrage in areas with large power consumptions, and the integration of CAES with renewable energy generation in the “Three North” regions of China reveals considerable economic and environmental benefits. The challenges for commercializing CAES in China are also discussed.