The utility of energy storage to improve the economics of wind–diesel power plants in Canada

Wind energy systems have been considered for Canada's remote communities in order to reduce their costs and dependence on diesel fuel to generate electricity. Given the high capital costs, low-penetration wind–diesel systems have been typically found not to be economic. High-penetration wind–diesel systems have the benefit of increased economies of scale, and displacing significant amounts of diesel fuel, but have the disadvantage of not being able to capture all of the electricity that is generated when the wind turbines operate at rated capacity.Two representative models of typical remote Canadian communities were created using HOMER, an NREL micro-power simulator to model how a generic energy storage system could help improve the economics of a high-penetration wind–diesel system. Key variables that affect the optimum system are average annual wind speed, cost of diesel fuel, installed cost of storage and a storage systems overall efficiency. At an avoided cost of diesel fuel of 0.30 $Cdn/kWh and current installed costs, wind generators are suitable in remote Canadian communities only when an average annual wind speed of at least 6.0 m/s is present. Wind energy storage systems become viable to consider when average annual wind speeds approach 7.0 m/s, if the installed cost of the storage system is less than 1000 $Cdn/kW and it is capable of achieving at least a 75% overall energy conversion efficiency. In such cases, energy storage system can enable an additional 50% of electricity from wind turbines to be delivered.