The Transactions of The Korean Institute of Electrical Engineers (전기학회논문지)

The Korean Institute of Electrical Engineers (대한전기학회)
권호 표지
DOI QR코드

DOI QR Code

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

비주거용 소비자 전력요금최소화 목적 BESS 최적운영 및 경제성 평가

  • Received : 2016.01.04
  • Accepted : 2016.04.01
  • Published : 2016.08.01
Download PDF
⟨ Previous Next ⟩

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.

Keywords

References

  1. J. Eyer and G. Corey, "Energy Storage for the Electricity Grid: Benefits and Market Potential Assessment Guide", Sandia National Lab., 2010.
  2. D. Rastler, "Electricity Energy Storage Technology Options: A White Paper Primer on Applications, Costs, and Benefits", EPRI, 2011.
  3. D. Maly and K. Kwan, "Optimal battery energy storage system(BESS) charge scheduling with dynamic programming", Proc. Inst. Elect. Eng. Sci. Meas. Technol., vol. 142, no. 6, pp. 453-458, 1995 https://doi.org/10.1049/ip-smt:19951929
  4. Oudalov, A., Cherkaoui, R., Beguin, A., "Sizing and Optimal Operation of Battery Energy Storage System for Peak Shaving Application", IEEE PowerTech, Lausanne, 1-5 July 2007, Page(s):621-625.
  5. C. Lo and M. Anderson, "Economic dispatch and optimal sizing of battery energy storage systems in utility load-levelling operations", IEEE Trans. Energy Convers., vol. 14, no. 3, pp.824-829 1999 https://doi.org/10.1109/60.790960
  6. R. Sioshansi, P. Denholm, T. Jenkins and J. Weiss "Estimating the value of electricity storage in PJM: Arbitrage and some welfare effects", Energy Econ., vol. 31, pp. 269-277 2008
  7. J.Y. Park et al.. "Economic Assessment of ESS for Peak Load Shaving in the Substation of Urban Railway", KIEE, Vol. 63, No. 12, pp. 1752-1758, 2014
  8. S. K. Kim et al. "Sizing and Economic Analysis of Battery Energy Storage System for Peak Shaving of High-Speed Railway Substations", KIEE, Vol. 63, No. 1, pp. 27-34, 2014
  9. J. H. Heo et al., "Study on the Optimal Operation of ESS Considering Urban Railway Load Characteristic", Vol. 64, No. 10, pp. 1508-1516, 2015 https://doi.org/10.5370/KIEE.2015.64.10.1508
  10. Gerald J. Thuesen & W.J Frbrycky, "Engineering Economy", Prentice Hall; 9 edition, June 9, 2000.
  11. L. Gao, S. Liu and R. Dougal, "Dynamic lithium-ion battery model for system simulation", IEEE Trans. Compon. Packag. Technol., vol. 25, no. 3, pp. 495-505, 2002 https://doi.org/10.1109/TCAPT.2002.803653
  12. IRENA, "Battery Storage for Renewables: Market Status and Technology Outlook", 2015.01.
  13. Korea Electric Power Corporation, http://www.kepco.co.kr
  14. C. Zhou, K. Qian, M. Allan, and W. Zhou, "Modeling of the Cost of EV Battery Wear Due to V2G Application in Power Systems", IEEE Trans. Energy Convers., vol. 26, no. 4, pp. 1041-1050, 2011 https://doi.org/10.1109/TEC.2011.2159977
  15. J. B. Park et al., "An Economic Assessment of Largescale Battery Energy Storage Systems in the Energy-Shift Application to Korea Power System", KIEE, Vol. 64, No. 3, pp. 384-392, 2015 https://doi.org/10.5370/KIEE.2015.64.3.384
  16. KERI, "2010 Demand Side Management Project Report", 2010.
  17. Korea Power Exchange, http://www.kpx.or.kr
  18. "The 6th Basic Plan of Long Term Electricity Supply & Demand", Ministry of Trade, Industry and Energy, 2013
  19. DOE/EPRI, "2013 electricity storage handbook in collaboration with NRECA, (Albuquerque, NM: Sandia National Laboratories).", 2013