A comprehensive community energy storage planning strategy based on a cost-benefit analysis

Sardi, Junainah; Mithulananthan, Nadarajah; Hung, Duong Quoc

doi:10.1109/aupec.2016.7749345

Cited by 7 publications

(4 citation statements)

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“…There are different operation strategies in other works. In [26], the control mechanism was to charge during the off-peak period and to discharge it during the peak period, and made energy arbitrage on this basis, which was opposite with the operation strategy in this paper. In this case, energy operators may not make enough benefits under TOU price compared with the dual-response mechanism proposed in this paper.…”

Section: Decision-making Process Of the Charge And Discharge Modelmentioning

confidence: 87%

Cost–Benefit Analysis of Energy Storage in Distribution Networks

Hou

Kou

et al. 2019

Energies

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Due to the challenges posed to power systems because of the variability and uncertainty in clean energy, the integration of energy storage devices (ESD) has provided a rigorous approach to improve network stability in recent years. Moreover, with the rapid development of the electricity market, an ESD operation strategy, which can maximize the benefits of ESD owners as well as the contribution to the electricity network stability, plays an important role in the marketization of ESDs. Although the benefits for ESD owners are discussed in many studies, the economic impact of ESD operation on distribution networks has not been commendably taken into account. Therefore, a cost-benefit analysis method of ESD which quantifies the economic impact of ESD operation on distribution networks is proposed in this paper. Considering the time-of-use (TOU) price and load demand, the arbitrage of ESD is realized through a strategy with low price charging and high price discharging. Then, the auxiliary service of ESD is realized by its capability of peak shaving and valley filling. In this paper, the long-run incremental cost (LRIC) method is adopted to calculate the network price based on the congestion cost. Based on the dynamic cost-benefit analysis method, the cost-benefit marginal analysis model in the ESD life cycle is proposed through the calculation of the present value of benefit. Subsequently, the optimal ESD capacity and charge/discharge rate is obtained to get the shortest payback period by analyzing different operation parameters. Finally, a case study is undertaken, where the ESD operation model mentioned above is simulated on a two-bus system and a 33-bus system, and the ESD cost-benefit analysis and the analysis of corresponding influence factors are carried out adequately.Energies 2019, 12, 3363 2 of 23 significantly. Hence, it is important to put forward an appropriate cost-benefit method of ESDs in distribution networks.Moreover, the electricity market reform has been carried out gradually around the world, and the pilot work of an incremental distribution network is on its way [2]. The incremental distribution network encourages multiple subjects, such as grid companies or individual users, to invest jointly, thus, there is no longer a single form of monopoly for system planning and construction. The permeability of clean energy, such as solar energy, wind energy, tidal energy, nuclear energy, and geothermal energy is increasing rapidly, and the number of ESD users in local power networks is also increasing year by year. Under the background described above, the power supply, network, and load construction are presented as a new mode of investment opening. Therefore, it is more practical to discuss the investment benefits of ESDs in the network under the mode.The motivation and incitement of this paper were discussed above.To keep abreast of current information and development in the field of ESDs, the literature reviews are introduced as follows.There are several relevant studies on the charge and discharge ra...

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Section: Decision-making Process Of the Charge And Discharge Modelmentioning

confidence: 87%

Cost–Benefit Analysis of Energy Storage in Distribution Networks

Hou

Kou

et al. 2019

Energies

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“…Therefore, the investment of hybrid AC/DC distribution network is much lower than that of building new AC lines. The discounted payback period is 4.96 year considering 5% discount rate according to reference [35], from the economic profits of loss reduction and increased electricity supply. If only considering the investment to the converters and profits from the electricity supply, the payback time is 4.8 year (=48/10).…”

Section: F Discussionmentioning

confidence: 99%

Converting AC Distribution Lines to DC to Increase Transfer Capacities and DG Penetration

Zhang

Liang

Tang

et al. 2019

IEEE Trans. Smart Grid

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Transfer capacities of urban distribution networks need to be increased to fulfill the increasing load demands and to accommodate distributed generation (DG). However, there are limited spaces to build new substations and lines, and curtailment of DGs may happen due to voltage violation during DG outputs fluctuation. This paper proposes and analyzes various methods to convert some existing ac MV lines to dc lines in order to form a hybrid ac/dc distribution network, based on which transfer capacities of lines can be increased, and flexible power shift can be achieved through a voltage source converter between two lines. The increases of transfer capacities are quantified. Optimal operation to fully utilize the increased capacities is achieved, in which losses are minimized in day-ahead scheduling, and node voltages are regulated real-time within security ranges based on limited measurement. Not only reactive power but also real power optimization are designed to maximize load supply and DG accommodation. A sensitivity method is proposed considering relatively large r/x ratio of an MV distribution network, which is effective for the real-time voltage regulation. Simulations are performed to verify the proposed method.

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“…Thus, under certain conditions, maximal value can be obtained from an ESS to make it profitable and this profitability can be demonstrated via payback period and profitability index (Pei et al, 2019). The economic potential for the investment in an ESS also offering load following, peak shaving and outage mitigation services to the microgrid is also assessed with indicators like Net Present Value, Discounted Payback Period and Benefit Cost Ratio in (Sardi et al, 2016). An ESS also providing similar benefits with the aim of maximising profit to the microgrid owner is considered in (Jain et al, 2018); however, the authors did not include grid integration and market research, but concluded that stacked benefits in grid scenarios considering life cycles can be evaluated in future research.…”

Section: The Prosumer Microgrid and Energy Storage Systemsmentioning

confidence: 99%

“…Further down the electricity distribution chain, ESS can still offer benefits to smaller networks. For grid-tied, offgrid, residential, industrial or commercial consumers and prosumer microgrids, ESS can provide financial benefits via energy arbitrage, reduced grid or diesel expenses, reduced greenhouse gas (GHG) emissions penalties and provide energy time-shift (Jain et al, 2018;Pei et al, 2019;Sardi et al, 2016). While these financial benefits may be easier to quantify the contributions of ESSs, technical benefits such as improved reliability, voltage fluctuation mitigation, congestion relief, decreased energy loss, distribution upgrade deferral or frequency stabilisation are more complicated to quantify in monetary terms, but are nonetheless some of the improvements noticed in systems with storage systems included (Pei et al, 2019;Tsagkou et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

Stacked value streams of hybrid energy storage systems in prosumer microgrids

Gbadegesin

Sun

Nwulu

2020

JEDT

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Purpose Storage systems are deemed to be unable to provide revenue commensurate with the resources invested in them, thus discouraging their incorporation within power networks. In prosumer microgrids, storage systems can provide revenue from reduced grid consumption, energy arbitraging or when serving as back-up power. This study aims to examine stacking these revenue streams with the aim of making storage systems financially viable for inclusion in prosumer microgrids. Design/methodology/approach With the aim of reducing self-consumption and maximising revenue, the prosumer microgrid incorporating hybrid energy storage systems (HESS) and solar PV power is solved using the CPLEX solver of the Advanced Interactive Multidimensional Modeling Software (AIMMS). The financial analysis of the results is carried out to provide the payback periods of different system configurations of the prosumer microgrid. Findings The findings reveal that the payback period of the three HESS when minimising grid expenses during self-consumption alone and when compared with stacked revenue streams shows an improvement from 4.8–11.2 years to 2.4–6.6 years. With stacked HESS revenues, the supercapacitor-lithium ion battery HESS gave the shortest payback period of 2.31 years when solar PV power is at 75% penetration level. Originality/value Existing literature has considered revenue streams of storage systems at the electrical power transmission and distribution levels, but not for prosumer microgrids in particular. This study has captured these benefits and verified the profitability of stacking revenue from HESS to prosumer microgrids, using a case study.

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A comprehensive community energy storage planning strategy based on a cost-benefit analysis

Cited by 7 publications

References 0 publications

Cost–Benefit Analysis of Energy Storage in Distribution Networks

Cost–Benefit Analysis of Energy Storage in Distribution Networks

Converting AC Distribution Lines to DC to Increase Transfer Capacities and DG Penetration

Stacked value streams of hybrid energy storage systems in prosumer microgrids

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