Compressed air energy storage (CAES) facilities offer an attractive way for bulk power systems to buffer the intermittent nature of renewable energy, storing excess energy when it’s not needed and retrieving it during peak demand. But few studies have examined their operation in electricity markets.

For WISE researchers Claudio Cañizares, Kankar Bhattacharya and Matheus Zambroni de Souza, the question was how to maximize daily profits for these facilities. To find out, they developed two…