Optimal Operation of Battery Storage for a Subscribed Capacity-Based Power Tariff Prosumer—A Norwegian Case Study

Abstract

The cost of peak power for end-users subject to a demand charge may be substantial, expecting to increase further with the vast growth of power-demanding devices. In cases where load-shifting is not a viable option for cost reduction, battery storage systems used for peak shaving purposes are emerging as a promising solution. In this paper, the economic benefits of implementing battery storage into an existing grid-connected photovoltaic system for a medium-scale swimming facility is studied. The objective is to minimize the total cost of electricity for the facility, including the cost of energy and peak power demand, while ensuring the longevity of the battery. An optimization model based on multi-integer linear programming is built, and simulated using a one-year time horizon in GAMS and Matlab. The main results reveal that installing a battery storage system is economically attractive today, with net savings on the total system cost of 0.64% yearly. The cost of peak power is reduced by 13.9%, and the savings from peak shaving operation alone is enough to compensate for the yearly cost of the battery. Moreover, the battery ensures additional revenue by performing price arbitrage operations. When simulating the system for an assumed 2030 scenario, the battery is found to be more profitable with a yearly net savings of 4.15%.

Optimal Asset Planning for Prosumers Considering Energy Storage and Photovoltaic (PV) Units: A Stochastic Approach

“…For instance, authors in [15] determined the techno-economic feasibility of incorporating distributed energy sources (DER), such as a PV system, and ESSs into a virtual power plant. In this context, F. Berglund et al presented a grid-connected PV system for a medium-scale swimming facility [2]. Authors demonstrated that the installation of a BESS into the existing microgrid is economically beneficial with net savings on the total cost of the system by optimal sizing and controlling of the BESS.…”

“…Similarly, the work presented by Y. Hong et al determines the optimal capacities of energy storage in an islanded microgrid while excluding the optimization of the size of the PV system and energy exchange between the grid and prosumer [22]. A genetic algorithm to optimize the charging and discharging scheduling of prosumer batteries by minimizing the amount of energy exchanged with the main grid was presented by F. Berglund et al [2]. Moreover, several works present various approaches to optimize the energy scheduling of BESS in microgrid applications [23][24][25][26].…”

“…Compared to non-renewable energy resources, renewable energy has an unlimited supply and is environmental beneficial. Although the generation of renewable energy is generally more expensive, recent works have been developed to prove that overall energy costs can be reduced by the adoption of alternative energy sources [2][3][4][5][6][7]. In addition, the adoption of renewable energy as a distributed generation (DG) has increased as technologies associated with photovoltaic (PV) generation and energy storage continue to evolve [8,9].…”

Impact of Energy Storage Useful Life on Intelligent Microgrid Scheduling

“…The operation cost of the battery banks is similar as the cost of life of the renewable energy generation equipment (C bl ) [8,15,[35][36][37][38][39][40]. This is presented in Equation (18), where L loss is the battery life loss and C init-bat is the initial investment cost [8].…”

Lifetime Expectancy of Li-Ion Batteries used for Residential Solar Storage

“…Degradation evolution is very important for the economic analysis of these systems, which are still costly, as already indicated, and whose profitability is still under discussion [18]. In fact, degradation is already a key parameter in the profitability analyses of batteries being proposed in applications, such as ramp rate control of large renewable power generation plants [19,20], ancillary services [21,22], energy arbitrage, and peak shaving provided by large energy storage systems [23,24], and even for electric vehicle integration [25]. Among those published for the residential solar storage sector, some can be highlighted.…”