Demand response and energy storage systems: An industrial application for reducing electricity costs. Part I: Theoretical aspects

Abstract

In this paper, the benefits that can be derived from the installation of an energy storage system in an industrial facility are analyzed, and an optimal control strategy of the storage system is proposed. The proposed control strategy is based on a two-step procedure and aims at (i) reducing the electricity costs sustained by an industrial customer that provides demand response and (ii) satisfying technical constraints for the maximization of the efficiency and lifecycle of the storage system. The procedure was performed based on two different time periods, i.e., day ahead and very short time. The day-ahead scheduling evaluates the peak value of the power that the facility must request from the grid and the periods in which the battery is allowed to charge and discharge; the very short-time control evaluates the battery's charging/discharging power to minimize costs. This paper reports the theoretical aspects of the optimization models for the two-step procedure, whereas the companion paper "Part II: numerical applications" proposes the results of numerical applications of the proposed approach on an actual industrial facility.

Demand response and energy storage systems: An industrial application for reducing electricity costs. Part II: Numerical application

“…In order to satisfy these constraints, the final state of charge of the battery (236 kWh) did not perfectly match the desired value (240 kWh). As discussed in [3] this happens due to forecasting errors and thus lower values of the battery's state of charge at end of the last time interval, as well as higher values of the maximum peak power, were allowed…”

“…This paper reports the results of the numerical applications referring to the formulation proposed in the companion paper [3] where the theoretical formulation for the optimal operation of a BESS for an industrial application is presented. The control strategy proposed in [3] is based on a two-step procedure and is aimed at reducing the electricity costs sustained by the industrial customer while satisfying technical constraints for the maximization of the efficiency and lifecycle of the storage system. The procedure is developed on two different time scales, i.e., day ahead and very short time and requires as input data a load demand forecasting effected in the different time scales.…”

“…Aim of the numerical analysis reported in this paper is to quantify the potential advantages of using BESSs in industrial facilities by means of the two step control strategy proposed in [3]. Particular attention is paid in evidencing the influence of the forecasting errors on the load demand taking into account that the short time forecast, in fact, is able to improve the operating strategy by adapting BESS operation on the basis of new real time measurements in which the load requirements could result different from those evaluated in the day ahead forecast.…”