Electric Bill Minimization Model and Economic Assessment of Battery Energy Storage Systems Installed in a Non-residential Customer

Abstract

This paper presents optimal operational scheduling model and economic assessment of Li-ion battery energy storage systems installed in non-residential customers. The operation schedule of a BESS is determined to minimize electric bill, which is composed of demand and energy charges. Dynamic programming is introduced to solve the nonlinear optimization problem. Based on the optimal operation schedule result, the economics of a BESS are evaluated in the investor and the social perspective respectively. Calculated benefits in the investor or customer perspective are the savings of demand charge, energy charge, and related taxes. The social benefits include fuel cost savings of generating units, construction deferral effects of the generation capacity and T&D infra, and incremental CO2 emission cost impacts, etc. Case studies are applied to an large industrial customer that shows similarly repeated load patterns according to days of the week.

Single-Phase 13-Level Power Conditioning System for Peak Power Reduction of a High-Speed Railway Substation

“…If the peak power of the substation is 30 MW within the operating period of the demo system, it is expected that PPRS would have reduced the peak power of the substation to 24 MW by supplying 6 MW to the tramway. This is about a 20% reduction in peak power for substations [37].…”

Economic Analysis of Special Rate for Renewable Energy Based on the Design of an Optimized Model for Distributed Energy Resource Capacities in Buildings

“…Customers in these methods could maximize their benefit to reduce peak demand and the total cost by considering the ESS operation with their tariff. Other methods were proposed to describe the strategy of various customers including residential and non-residential customers for maximizing their benefit [20][21][22]. However, prior research studies have been limited in that they only considered (a) the revenue of a power generation business, (b) a specific season, or (c) a single facility [23,24].…”