“…The installation and maintenance cost of the ESS in (7) has a relation with W battery and P PCS , which are determined by ΔP peak , so that the annual investment cost, C ann , in (7) is formulated as a function of ΔP peak , as shown in (14). The annual cost reduction of electricity by the ESS, R ann , is also formulated as a function of the ΔP peak , as shown in (15) Then, the optimal capacities of the battery and PCS are determined by (1) and (3), respectively.…”