“…In the literature [10], [14], [16], the essential part of BESS power arbitrage model (PAM) can be extracted as follows:…”
Section: Battery Arbitrage Optimization Model In Electricity Marketmentioning
confidence: 99%
“…In the remaining parts of this paper, for convenience, we assume the dependency relationship is defined by the so-called open-circuit voltage dependency function (OCVDF). Various OCVDF formulations have been proposed in the literature and most of these formulations are highly non-linear and nonconvex [14], [16]- [20], which further leads to non-convex optimization models with non-convex constraints for the BESS that are difficult to solve. This forms the second major computational challenge in the BESS optimization models.…”
<div>Maintaining the balance between electricity production and consumption is an essential task in the operations of modern power grids. In recent years, battery energy storage system (BESS) has been gaining more and more attention owning to its decreasing capital cost, high flexibility and short response time. However, there exist several technical challenges in developing accurate models and effective algorithms for the operations of BESS. One major challenge is that in order to precisely describe the changing dynamics of battery status, usually highly non-linear functions and integer variables must be used in the model, leading to optimization models with nonlinear and non-convex objective function/constraints that are difficult to handle. To address the above challenges, in this paper we first explore the physical law in the battery charging and discharging process to develop a new model which naturally addresses both the charging and discharging processes through a single current decision variable. Then we propose to approximate the dependency relationship between the open circuit voltage (OCV) and the state of charge (SOC) by some linear functions. This leads to a new non-convex quadratic programming model with linear and bilinear constraints (BLCQP) for the identification of the optimal operational strategy for the BESS. To cope with the bilinear constraints in the BLCQP, we introduce a novel transformation technique to transfer the original BLCQP into another equivalent exponential optimization problem with linear constraints (LCEO). A new sequential linear and quadratic programming approach (SLQP) for the LCEO is developed and its convergence is established. Preliminary experiments are conducted to demonstrate the efficacy of the new model and the efficiency of the new algorithm.</div>
“…In the literature [10], [14], [16], the essential part of BESS power arbitrage model (PAM) can be extracted as follows:…”
Section: Battery Arbitrage Optimization Model In Electricity Marketmentioning
confidence: 99%
“…In the remaining parts of this paper, for convenience, we assume the dependency relationship is defined by the so-called open-circuit voltage dependency function (OCVDF). Various OCVDF formulations have been proposed in the literature and most of these formulations are highly non-linear and nonconvex [14], [16]- [20], which further leads to non-convex optimization models with non-convex constraints for the BESS that are difficult to solve. This forms the second major computational challenge in the BESS optimization models.…”
<div>Maintaining the balance between electricity production and consumption is an essential task in the operations of modern power grids. In recent years, battery energy storage system (BESS) has been gaining more and more attention owning to its decreasing capital cost, high flexibility and short response time. However, there exist several technical challenges in developing accurate models and effective algorithms for the operations of BESS. One major challenge is that in order to precisely describe the changing dynamics of battery status, usually highly non-linear functions and integer variables must be used in the model, leading to optimization models with nonlinear and non-convex objective function/constraints that are difficult to handle. To address the above challenges, in this paper we first explore the physical law in the battery charging and discharging process to develop a new model which naturally addresses both the charging and discharging processes through a single current decision variable. Then we propose to approximate the dependency relationship between the open circuit voltage (OCV) and the state of charge (SOC) by some linear functions. This leads to a new non-convex quadratic programming model with linear and bilinear constraints (BLCQP) for the identification of the optimal operational strategy for the BESS. To cope with the bilinear constraints in the BLCQP, we introduce a novel transformation technique to transfer the original BLCQP into another equivalent exponential optimization problem with linear constraints (LCEO). A new sequential linear and quadratic programming approach (SLQP) for the LCEO is developed and its convergence is established. Preliminary experiments are conducted to demonstrate the efficacy of the new model and the efficiency of the new algorithm.</div>
“…However, constant aging coefficients were used to calculate calendar and cycle aging and only the dominant aging factor was considered. The study by Jafari et al in [27] used a battery degradation model for NMC type batteries, built upon the study by Sakti et al in [28]. The effect of representing battery degradation in off-shore wind energy storage systems was investigated.…”
Dispatch of battery storage systems for stationary grid applications is a topic of increasing interest: due to the volatility of power system's energy supply relying on variable renewable energy sources, one foresees a rising demand and market potential for both short-and long-term fluctuation smoothing via energy storage. While the potential revenue attainable via arbitrage trading may yet surpass the steadily declining cost of lithium-ion battery storage systems, profitability will be constrained directly by the limited lifetime of the battery system and lowered by dissipation losses of both battery and power electronic components. In this study, we present a novel three-dimensional mixed-integer program formulation allowing to model power, state of charge (SOC), and temperature dependence of battery dynamics simultaneously in a three dimensional space leveraging binary counting and union-jack triangulation. The inclusion of a state-of-the-art electro-thermal degradation model with its dependence on most influential physical parameters to the arbitrage revenue optimization allows to extend the battery lifetime by 2.2 years (or 40%) over a base scenario. By doing a profitability estimation over the battery's lifetime and using 2018 historical intraday market trading prices, we have shown that profitability of the system increases by 11.14% via introducing SOC awareness and another significant 12.64% via introducing thermal sensitivity, resulting in a total 25.19% increase over the base case optimization formulation. Lastly, through the open source publication of the optimization routines described herein, an adaption and development of the code to individual needs is facilitated.
“…Considering correlated electricity prices and load demands, an operating strategy based on two thresholds was proposed. Sakti et al in [15] presented an interesting mathematical model based on the MILP approach to model conventional batteries (specifically lithium-ion batteries). The model was formulated based on basic physical phenomena such as thermodynamics, charge conduction, charge transfer at an interface, and mass transport.…”
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