Considering the Life-Cycle Cost of Distributed Energy-Storage Planning in Distribution Grids

Abstract

In the face of the radical revolution of energy systems, there is a gradually held consensus regarding the adoption of distributed renewable energy resources, represented by Photovoltaic (PV) and wind generation. Consequently, the distributed Energy Storage Systems (ESSs) have become increasingly important in the distribution networks, as they provide the arbitrage and ancillary services. Determining the optimal installation site and the capacity of the distributed ESSs will defer the network reinforcements, reduce the investment of ESSs, and improve the reliability, flexibility, and efficiency of distribution grids. In order to investigate the optimal ESS configuration and to solve voltage fluctuations brought by the increased penetration of PV, in this study a two-stage heuristic planning strategy has been proposed, which considers both the economic operation and the lifetime of the distributed ESSs, to determine the optimal sitting and sizing of the ESSs, in the distribution grids. The first stage decides the optimal installation site and the economic scheduling of the ESSs, aiming to minimize the fabricating cost of the distributed ESSs and the network losses. Based on the output of the first stage, the second stage planning is further delivered to achieve the optimal ESS capacity, considering the Life-Cycle Cost (LCC) minimization. Finally, the feasibility and effectiveness of the proposed method is verified on a typical distribution case study network.

Optimal Capacity Allocation of Energy Storage in Distribution Networks Considering Active/Reactive Coordination

“…In other words, the allocation scheme of ESS with reactive power compensation saved 41% of the average annual cost compared with the scheme without considering reactive power contribution. Comparing the optimization method with the authors' previous research proposed in [60], results are shown in Table 5. The two models were designed to solve the problem of DNs voltage fluctuations caused by the increase of DG penetration, but ESS arbitrage operation and the reactive power of PCS are not considered in [60].…”

Cost Allocation Mechanism Design for Urban Utility Tunnel Construction Based on Cooperative Game and Resource Dependence Theory

“…Therefore, when DCM is used for UUT construction cost allocation, the direct-laying cost of pipeline should be calculated in a specific time period. In this paper, the time period is set to the life cycle of UUT for the reason that life cycle cost theory considers all stages of UUT from planning, construction, operation to retirement, avoiding decision-making being limited to a certain period of time [18]. After discounting the direct-laying cost of pipelines in the life cycle to the present value, the DCM based cost allocation index of pipeline i can be expressed as:…”

“…It can be seen from Equation 17that α i is proportional to the payback period P i , and inversely proportional to the net investment income and the cost-benefit ratio (i.e., the ratio of the investment income to the allocated UUT construction cost). Equation (18) denotes that the payback period P i is the maximum value of time t that the net investment income within t is equal to the allocated cost of pipeline company i.…”

Many-Criteria Evaluation of Infrastructure Investment Priorities for Distribution Network Planning

“…The life cycle cost of a distribution network infrastructure project is composed of initial investment costs, operation and maintenance costs, waste and environmental cost, and failure costs [18]:…”