The economic value of a centralized approach to distributed resource investment and operation

Carvallo, Juan Pablo; Zhang, Nan; Murphy, Seán; Leibowicz, Benjamin D.; Larsen, Peter H.

doi:10.1016/j.apenergy.2020.115071

Cited by 16 publications

(6 citation statements)

References 38 publications

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“…All the maximum hosting capacities were above 15%, which is the traditional threshold used in industry before require significant interventions in the network [25]; however, the maintenance requirements of electrical infrastructure (e.g., in-line voltage regulator) could be moderately affected with earlier maintenance needed up to 5 years in advance (see Figure 14). Hence, the results of the assessment reinforce the idea that advanced studies for solar PV integration should replace conventional rules-of-thumb [10], [25] and be integrated as part of the early stages of distribution network planning process to enable requests for PV connections.…”

Section: B Technical Performance Of Grid-level Besssupporting

confidence: 53%

“…Grid-scale energy storage can help stabilise the power networks by reacting to grid demand with a range of applications related to power quality, ancillary services or supply of energy in a centralised manner [4]. When compared to decentralised storage, centralised storage systems in the distribution network can represent a more costeffective solution for the planning of the distribution system in the long-term [10]. In addition, these systems can minimise losses, thermal loading of power lines, voltage fluctuations, and increase the reliability for security of supply [11], [12].…”

Section: Introductionmentioning

confidence: 99%

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Techno-Economic Assessment of Grid-Level Battery Energy Storage Supporting Distributed Photovoltaic Power

Lopez‐Lorente¹,

Liu

Best

et al. 2021

IEEE Access

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Centralised, front-of-the-meter battery energy storage systems are an option to support and add flexibility to distribution networks with increasing distributed photovoltaic systems, which generate renewable energy locally and help decarbonise the power sector. However, the provision of specific services at distribution level remains under development for real applications in industry. To this end, this paper presents an exhaustive techno-economic analysis of the role of front-of-the-meter battery energy storage systems in primary distribution networks with presence of distributed PV covering: (i) the siting decision for storage systems using multi-objective genetic algorithm optimisation; (ii) the response when smart capabilities for PV inverters (e.g., volt-var control) are present; and (iii) the quantification of revenue streams and compensation schemes that would bring positive profitability when providing distributionspecific services based on the supply of real and reactive power. The performance of grid-level battery energy storage technology is evaluated in the IEEE 34-bus system particularised to the distribution code of Northern Ireland, UK. The techno-economic assessment covers one year of simulations at 1-minute resolution performed with the simulation tool EPRI OpenDSS and its Python communication interface. The results show that, besides the technical benefits of centralised battery storage systems, the economic compensation based on traditional transmission-level services is not sufficient for the profitability of these projects. Several ideas are explored to improve the profitability of these systems considering the local value and decarbonisation they add. The findings presented can direct system operators and regulators towards developing schemes to incentivise centralised battery energy storage projects in distribution networks in the context of distribution-level services.INDEX TERMS battery energy storage systems, distribution network services, distributed solar energy, flexibility services, photovoltaic power.

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Section: B Technical Performance Of Grid-level Besssupporting

confidence: 53%

Section: Introductionmentioning

confidence: 99%

Techno-Economic Assessment of Grid-Level Battery Energy Storage Supporting Distributed Photovoltaic Power

Lopez‐Lorente¹,

Liu

Best

et al. 2021

IEEE Access

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“…For example, the techno-economic effect of bulk and distributed energy storage on the power system of Great Britain were analyzed [27]. Another example discussed investment decisions in DER vs distribution system expansion in the context of electricity access [28] and for a mature U.S. vertically integrated utility [1]. A recently developed model was built with enhanced capacity to handle vast amounts of data to simulate distributed and BPS resources [29].…”

Section: │6mentioning

confidence: 99%

“…Simulations are performed on the Cymdist power engineering software from CYME/Eaton. Cymdist has a Python API that is used to automate simulations 1 . All active and reactive loads from each Cymdist feeder model are overwritten by reading a csv file with pre-determined hourly values based on the Cymdist input data explained in section C.3 in the SI.…”

Section: Distributionmentioning

confidence: 99%

“…These technologies are grouped and identified throughout this document as Distributed Energy Resources (DER). DER hold the promise to add value to the power system, but their decentralized deployment and operation will technically and economically impact different segments in the power system [1]. The motivation for this paper is to understand the impacts that DER adoption and operation will have across a regional power system.…”

Section: Introductionmentioning

confidence: 99%

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A framework to measure the technical, economic, and rate impacts of distributed solar, electric vehicles, and storage

et al. 2021

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This study explores the joint impacts across the power system of distributed energy resources (DER) that could be deployed in utility distribution systems through an analysis of generation, transmission, and distribution expansion and costs driven by DER adoption. We identify six adoption scenarios that combine deployment levels of rooftop solar photovoltaic modules (PV), electric vehicle charging (EV), and battery storage in residential and commercial customers connected to representative feeders in Indiana by 2025 and 2040. Indiana is a good proxy for many U.S. states with low current DER adoption but potentially high future growth. The economic value of DER is assessed by developing capacity expansion and power flow analysis of the generation and distribution segments, respectively, under future hourly demand assumptions based on each adoption scenarios. Results for the distribution system power flow simulations show that voltage violations are relatively rare. Voltage violations can be mitigated at a very low cost using a combination of smart inverters in future rooftop PV systems and voltage adjustments in the feeder heads. Line loading issues are minimal, with only 0.2% of simulation hours showing loading levels above 100% of capacity. Generation capacity impacts are driven by unmanaged EV charging and could be mitigated with charging management. We estimate that the incremental rate impact from power system investment and operation of increased DER adoption in Indiana will be between -1.6% to +2% in 2025 and +0.2% to +15% in 2040 relative to the base case.

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Techno-economic analysis of the impact of dynamic electricity prices on solar penetration in a smart grid environment with distributed energy storage

2021

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The economic value of a centralized approach to distributed resource investment and operation

Cited by 16 publications

References 38 publications

Techno-Economic Assessment of Grid-Level Battery Energy Storage Supporting Distributed Photovoltaic Power

Techno-Economic Assessment of Grid-Level Battery Energy Storage Supporting Distributed Photovoltaic Power

A framework to measure the technical, economic, and rate impacts of distributed solar, electric vehicles, and storage

Techno-economic analysis of the impact of dynamic electricity prices on solar penetration in a smart grid environment with distributed energy storage

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