The role of energy storage in accessing remote wind resources in the Midwest

Replacing current generation with wind energy would help reduce the emissions associated with fossil fuel electricity generation. However, integrating wind into the electricity grid is not without cost. Wind power output is highly variable and average capacity factors from wind farms are often much lower than conventional generators. Further, the best wind resources with highest capacity factors are often located far away from load centers and accessing them therefore requires transmission investments. Energy storage capacity could be an alternative to some of the required transmission investment, thereby reducing capital costs for accessing remote wind farms. This work focuses on the trade-offs between energy storage and transmission. In a case study of a 200MW wind farm in North Dakota to deliver power to Illinois, we estimate the size of transmission and energy storage capacity that yields the lowest average cost of generating and delivering electricity ($/MWh) from this farm. We find that transmission costs must be at least $600/MW-km and energy storage must cost at most $100/kWh in order for this application of energy storage to be economical.