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Modeling Storage and Demand Management in Electricity Distribution Grids

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Author Info

  • Andreas Schröder
  • Jan Siegmeier
  • Murk Creusen

Abstract

Storage devices and demand control may constitute beneficial tools to optimize electricity generation with a large share of intermittent resources through inter-temporal substitution of load. We quantify the related cost reductions in a simulation model of a simplified stylized medium-voltage grid (10kV) under uncertain demand and wind output. Benders Decomposition Method is applied to create a two-stage stochastic program. The model informs an optimal investment sizing decision as regards specific 'smart grid' applications such as storage facilities and meters enabling load control. Model results indicate that central storage facilities are a more promising option for generation cost reductions as compared to demand management. Grid extensions are not appropriate in any of our scenarios. A sensitivity analysis is applied with respect to the market penetration of uncoordinated Plug-In Electric Vehicles which are found to strongly encourage investment into load control equipment for `smart` charging and slightly improve the case for central storage devices.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.368984.de/dp1110.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1110.

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Length: 16 p.
Date of creation: 2011
Date of revision:
Handle: RePEc:diw:diwwpp:dp1110

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Related research

Keywords: Storage; demand management; stochastic optimization; Benders Decomposition;

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  1. Lee, Deok Ki & Park, Sang Yong & Park, Soo Uk, 2007. "Development of assessment model for demand-side management investment programs in Korea," Energy Policy, Elsevier, vol. 35(11), pages 5585-5590, November.
  2. Diaf, S. & Diaf, D. & Belhamel, M. & Haddadi, M. & Louche, A., 2007. "A methodology for optimal sizing of autonomous hybrid PV/wind system," Energy Policy, Elsevier, vol. 35(11), pages 5708-5718, November.
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