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Techno-economic analysis of compressed air energy storage in abandoned salt caverns: A case study in China

Author

Listed:
  • Liang, Rui
  • Ma, Hongling
  • Li, Hang
  • Wang, Xuan
  • Zeng, Zhen
  • Zheng, Zhuyan
  • Li, Wentao
  • Huang, Yashuai
  • Zhao, Kai

Abstract

To support the large-scale integration of renewable energy, this study evaluates the technical and economic feasibility of utilizing China's abundant abandoned salt caverns for compressed air energy storage (CAES). In contrast to existing studies that focus on newly constructed caverns under idealized conditions, this work investigates the mechanical behavior and reconstruction potential of abandoned caverns, which typically exhibit irregular geometries and complex stress histories. A 3D geomechanical model of the bedded salt formation in Pingdingshan is developed to simulate the cavern deformation during cyclic gas injection and withdrawal. A comprehensive stability evaluation system is proposed, including displacement, equivalent strain, safety factor, and volume shrinkage. The results indicate that a minimum operating pressure range of 9–12 MPa is recommended to ensure cavern stability. From an economic perspective, the levelized cost of electricity (LCOE) for CAES systems utilizing abandoned caverns and newly constructed caverns is estimated at $0.077/kWh and $0.081/kWh, respectively. Furthermore, scenario analyses based on China's solar, wind, and salt cavern resources indicate that, if the energy storage proportion reaches 10%, and 20% of caverns formed before 2020 and 50% after 2020 are reconstructed for CAES, the total investment cost would reach $3526.2 million by 2050. The findings indicate that utilizing abandoned salt caverns for CAES is technically and economically feasible, providing valuable insights for energy storage deployment in other regions.

Suggested Citation

  • Liang, Rui & Ma, Hongling & Li, Hang & Wang, Xuan & Zeng, Zhen & Zheng, Zhuyan & Li, Wentao & Huang, Yashuai & Zhao, Kai, 2025. "Techno-economic analysis of compressed air energy storage in abandoned salt caverns: A case study in China," Renewable Energy, Elsevier, vol. 254(C).
    • Handle: RePEc:eee:renene:v:254:y:2025:i:c:s0960148125012571
    DOI: 10.1016/j.renene.2025.123595
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    References listed on IDEAS

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