A Novel Operating Strategy for Customer-Side Energy Storages in Presence of Dynamic Electricity Prices

Abstract

In the wholesale energy market, electricity prices are determined by the balance between supply and demand. Normally, customers are not exposed to these variations but pay a constant electricity price. In an attempt to reduce demand peaks, several utilities are moving from a conventional fixed-rate pricing scheme to a new market-based model, based on time-of-use or real-time pricing, able to closely reflect the wholesale energy price. Electricity customers can thus take profit from the installation of storage systems, shifting their energy consumption from on-peak to off-peak periods. This paper presents a novel charging strategy to manage customer storage systems in presence of hourly electricity prices. The optimal operating schedule of the storage device is obtained by maximizing an objective function which corresponds to the maximum benefit for the storage owner. The proposed method is developed under the assumption that the operating scheduling of the battery energy storage system (BESS) does not depend on the specific facility's consumption. The model can be applied to several kinds of storages although the simulations refer to a lead-acid battery. operation strategy is effective to maximize the profit for the customer. The results also show that the investment can be recovered after several years when a lead-acid battery is used, but the situation will change in the near future, thanks to the cost reduction of storage technologies expected in coming years.

Investigating the role of nuclear power and battery storage in Hungary's energy transition using hourly resolution electricity market simulations

“…This suggests that for battery energy storage investments to be profitable at such investment costs, they need to participate also in balancing markets and generate revenue through up- and down balancing products, in addition to price arbitrage. The numerical results presented here are consistent with the findings in the literature [ [51] , [52] , [53] ].

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Monte Carlo-based Stochastic Analysis Results for Coordination of Single-Phase Rooftop PVs in Low Voltage Residential Networks

“…As a future research topic, the integeration of energy storage systems with rooftop PVs can be conisderted as an alternative for reducing the active power curtailement [23]. Thus, the VRT can be further modified to accommodate the presence and status of the energy storage systems in the LV feeders.…”

A Simple Operating Strategy of Small-Scale Battery Energy Storages for Energy Arbitrage under Dynamic Pricing Tariffs

“…The storage cost and the charge/discharge roundtrip efficiency have been selected calculating the arithmetic mean between low and high literature values [36]. In Table 2, the total storage cost has been decomposed as the sum of the power conversion system (PCS) cost, the BESS cost and the balance-of plant (BOP) cost [37]. The operating temperatures and the healthy DOD were derived from [29].…”