The Benefits of CAES Technology

• Fully integrated Renewables: While the majority of Ontario’s energy needs are met by nuclear and hydro-electric plants – sources of so-called ‘baseload generation’ – extra demand must be met by intermittent sources. Sometimes this can be met by solar or wind energy – but other times, it is met by gas-fired ‘peaking plants’. The owners of these plants receive ‘capacity payments’ whether or not the plants are operating. This is an expensive drag on resources. Investment in CAES technology could eliminate the need for these peaking plants, saving Ontario up to $5 billion.

• Load levelling: While Ontario has periods of excess demand, it also has periods of excess supply – when total demand in Ontario is less than the generating capacity of the nuclear fleet and hydro stations. Ontario must pay the owners of nuclear operating stations a fee to reduce their output, which is charged back to ratepayers, on top of the need to spill water at hydro plants. CAES reduces the need for this service by absorbing surplus baseload energy and delivering it back into the grid when demand warrants, saving the province up to $2.6 billion.

• Reduced carbon emissions: Ontario has achieved the single largest greenhouse gas reduction in North America by closing its coal-fired power plants. But as demand increases, so will carbon-emitting gas-fired generation, which is currently filling the gap. CAES can help curb these projected emissions through making wind investment more viable.

The study estimates that, through a combination of renewable energy integration and load leveling, 1000MW of CAES capacity could deliver between $6.5 billion and $8.3 billion in savings to Ontario ratepayers over 20 years, while reducing carbon emissions by 87 million tonnes over the same period.

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