An automated procedure for the design of Compressed Air Energy Storage (CAES) systems is presented. The procedure relies upon modern nonlinear programming algorithms, decomposition theory, and numerical models of the various system components. Two modern optimization methods are employed; BIAS, a Method of Multipliers code and OPT, a Generalized Reduced Gradient code. The procedure is demonstrated by the design of a CAES facility employing the Media, Illinois Galesville aquifer as the reservoir. The methods employed produced significant reduction in capital and operating cost, and in number of aquifer wells required.

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