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Optimal Operation of Battery Storage for a Subscribed Capacity-Based Power Tariff Prosumer—A Norwegian Case Study

Author

Listed:
  • Frida Berglund

    (Department of Electric Power Engineering, Norwegian University of Science and Technology, 7491 Trondheim, Norway)

  • Salman Zaferanlouei

    (Department of Electric Power Engineering, Norwegian University of Science and Technology, 7491 Trondheim, Norway)

  • Magnus Korpås

    (Department of Electric Power Engineering, Norwegian University of Science and Technology, 7491 Trondheim, Norway)

  • Kjetil Uhlen

    (Department of Electric Power Engineering, Norwegian University of Science and Technology, 7491 Trondheim, Norway)

Abstract

The cost of peak power for end-users subject to a demand charge may be substantial, expecting to increase further with the vast growth of power-demanding devices. In cases where load-shifting is not a viable option for cost reduction, battery storage systems used for peak shaving purposes are emerging as a promising solution. In this paper, the economic benefits of implementing battery storage into an existing grid-connected photovoltaic system for a medium-scale swimming facility is studied. The objective is to minimize the total cost of electricity for the facility, including the cost of energy and peak power demand, while ensuring the longevity of the battery. An optimization model based on multi-integer linear programming is built, and simulated using a one-year time horizon in GAMS and Matlab. The main results reveal that installing a battery storage system is economically attractive today, with net savings on the total system cost of 0.64% yearly. The cost of peak power is reduced by 13.9%, and the savings from peak shaving operation alone is enough to compensate for the yearly cost of the battery. Moreover, the battery ensures additional revenue by performing price arbitrage operations. When simulating the system for an assumed 2030 scenario, the battery is found to be more profitable with a yearly net savings of 4.15%.

Suggested Citation

  • Frida Berglund & Salman Zaferanlouei & Magnus Korpås & Kjetil Uhlen, 2019. "Optimal Operation of Battery Storage for a Subscribed Capacity-Based Power Tariff Prosumer—A Norwegian Case Study," Energies, MDPI, vol. 12(23), pages 1-24, November.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:23:p:4450-:d:289864
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    References listed on IDEAS

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    1. Holger C. Hesse & Rodrigo Martins & Petr Musilek & Maik Naumann & Cong Nam Truong & Andreas Jossen, 2017. "Economic Optimization of Component Sizing for Residential Battery Storage Systems," Energies, MDPI, vol. 10(7), pages 1-19, June.
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    Cited by:

    1. Morales Sandoval, Daniel A. & Saikia, Pranaynil & De la Cruz-Loredo, Ivan & Zhou, Yue & Ugalde-Loo, Carlos E. & Bastida, Héctor & Abeysekera, Muditha, 2023. "A framework for the assessment of optimal and cost-effective energy decarbonisation pathways of a UK-based healthcare facility11The short version of the paper was presented at ICAE2022, Bochum, German," Applied Energy, Elsevier, vol. 352(C).
    2. Eleonora Achiluzzi & Kirushaanth Kobikrishna & Abenayan Sivabalan & Carlos Sabillon & Bala Venkatesh, 2020. "Optimal Asset Planning for Prosumers Considering Energy Storage and Photovoltaic (PV) Units: A Stochastic Approach," Energies, MDPI, vol. 13(7), pages 1-20, April.
    3. Urbano, Eva M. & Martinez-Viol, Victor & Kampouropoulos, Konstantinos & Romeral, Luis, 2022. "Risk assessment of energy investment in the industrial framework – Uncertainty and Sensitivity Analysis for energy design and operation optimisation," Energy, Elsevier, vol. 239(PA).
    4. Carlo Baron & Ameena S. Al-Sumaiti & Sergio Rivera, 2020. "Impact of Energy Storage Useful Life on Intelligent Microgrid Scheduling," Energies, MDPI, vol. 13(4), pages 1-23, February.
    5. Hector Beltran & Pablo Ayuso & Emilio Pérez, 2020. "Lifetime Expectancy of Li-Ion Batteries used for Residential Solar Storage," Energies, MDPI, vol. 13(3), pages 1-18, January.
    6. Seward, William & Qadrdan, Meysam & Jenkins, Nick, 2022. "Quantifying the value of distributed battery storage to the operation of a low carbon power system," Applied Energy, Elsevier, vol. 305(C).

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