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Impact of demand side management on optimal sizing of residential battery energy storage system

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  • Mulleriyawage, U.G.K.
  • Shen, W.X.

Abstract

Widespread deployment of residential solar photovoltaic (PV) systems have been encouraged with decreasing system costs. Recently, cutbacks in government incentives such as Feed-in-tariffs (FiT) and feed-in power limits enforced by grid operators have questioned economic feasibility of rooftop PV systems. Residential battery energy storage system (BESS) is not only a solution to the above issues but also helps to overcome problems related to intermittent PV power. However, high investment cost of the BESS remains the key barrier in many markets around the world for the wide implementation of the BESS. This study investigates avenues of improving the economic sense of the BESS considering the demand side management (DSM) of residential loads. Results show that the proposed method has achieved 63.71 ± 18.24% capacity reduction compared to the optimal size of BESS without considering the DSM. Further, the impacts of DSM on optimal sizing of BESS are analyzed in terms of battery degradation, individual BESS value propositions as well as return on investment (ROI). More importantly, houses which use DSM must size the BESS considering DSM which increases the ROI of the BESS by 13.59 ± 4.11% in comparison to the ROI of BESS sized without DSM.

Suggested Citation

  • Mulleriyawage, U.G.K. & Shen, W.X., 2021. "Impact of demand side management on optimal sizing of residential battery energy storage system," Renewable Energy, Elsevier, vol. 172(C), pages 1250-1266.
    • Handle: RePEc:eee:renene:v:172:y:2021:i:c:p:1250-1266
    DOI: 10.1016/j.renene.2021.03.122
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    References listed on IDEAS

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