WP3 was aimed at establishing the thermo-economic requirements for AA-CAES. As part of that work, detailed economic models were prepared with the following characteristics:
- The GEMS model - is an investment and dispatch model of the German power generation system. It covers cost-minimising techniques applicable to both long-term investment decisions, and short-term operation.
- The GEMS-CHP model - is an adaptation of the GEMS model for the Dutch power generation system. It particularly excludes power generation from lignite plant and from pumped hydro storage, but notably includes combined heat and power generation.
- The DIMEX model - is a linear optimization model which maximizes the yearly profit contribution of plant operation taking into account both technical constraints and economic parameters. The model delivers the optimum plant dispatch and the resulting obtainable revenues. The models currently address particular markets. However, the fundamental approach of these models can be applied to any power generation mix, and therefore any market.