Techno-economic analysis of multi-generation liquid air energy storage system

Abstract

• Economic model of the multi-generation LAES system was established. • Economic analysis of the multi-generation LAES system was carried out. • Internal rate of return of the multi-generation system in Beijing reached 35%. • Dynamic payback period is most susceptible to the influence of uncertain factors. Multi-generation liquid air energy storage (LAES) system solves the shortcoming that the compression heat cannot be fully utilized in the general LAES system, and greatly improves the round-trip efficiency. Which is expected to become one of the most promising emerging energy technologies and has important research value and exploration significance. In order to prove the feasibility that the multi-generation LAES technology using peak-valley price difference for profits, this paper established the economic calculation model by life cycle cost theory. Based on peak-valley electricity price, heating price and cooling price of four typical cities in China, the cost analysis, profit analysis, breakeven analysis, sensitivity analysis and subsidy analysis of the multi-generation LAES system are carried out. The results show that the energy storage system has good economic benefits only in Beijing under the single electricity supply mode, the rate of return on investment is 12.5%, the internal rate of return is 25%, the static payback period is 6.25 years, and the dynamic payback period is 8.08 years. Under the multi-generation mode, the multi-generation LAES system has good economic benefits both in Beijing and Suzhou. Among them, the rate of return on investment in Beijing is increased 28.16% contrasted with the single electricity supply mode, the internal rate of return is increased 40%, the static payback period is decreased 34.88%, the dynamic payback period is decreased 42.33%. This study indicated that the multi-generation LAES system has strong market adaptability and risk resistance ability.