Optimal battery storage operation for PV systems with tariff incentives
TL;DR: In this paper, the authors developed a mixed integer linear programming (MILP) problem to solve the MILP problem and to analyse the benefits considering different electricity tariffs and battery storage unit cost in maximising feed-in tariff (FiT) revenue streams for the existing PV generating system.
About: This article is published in Applied Energy.The article was published on 2017-10-01 and is currently open access. It has received 203 citations till now. The article focuses on the topics: Stand-alone power system & Grid-connected photovoltaic power system.
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TL;DR: In this article, the authors present a review of battery energy storage systems for serving grid support in various application tasks based on real-world projects and their characteristics with respect to performance and aging.
Abstract: Battery energy storage systems have gained increasing interest for serving grid support in various application tasks. In particular, systems based on lithium-ion batteries have evolved rapidly with a wide range of cell technologies and system architectures available on the market. On the application side, different tasks for storage deployment demand distinct properties of the storage system. This review aims to serve as a guideline for best choice of battery technology, system design and operation for lithium-ion based storage systems to match a specific system application. Starting with an overview to lithium-ion battery technologies and their characteristics with respect to performance and aging, the storage system design is analyzed in detail based on an evaluation of real-world projects. Typical storage system applications are grouped and classified with respect to the challenges posed to the battery system. Publicly available modeling tools for technical and economic analysis are presented. A brief analysis of optimization approaches aims to point out challenges and potential solution techniques for system sizing, positioning and dispatch operation. For all areas reviewed herein, expected improvements and possible future developments are highlighted. In order to extract the full potential of stationary battery storage systems and to enable increased profitability of systems, future research should aim to a holistic system level approach combining not only performance tuning on a battery cell level and careful analysis of the application requirements, but also consider a proper selection of storage sub-components as well as an optimized system operation strategy.
458 citations
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...PV-BESS[42] Multi-use [192] PV-BESS [193,194] (e....
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TL;DR: In this paper, an optimization model is proposed to maximize the economic benefits for rooftop PV-battery DG in a peer-to-peer (P2P) energy trading environment, which is illustrated in a simulation framework for a local community with 500 households under real-world constraints encompassing PV systems, battery storage, customer demand profiles and market signals including the retail price, feed-in tariff and P2P energy trading mechanism.
191 citations
TL;DR: Simulation results reveal the suitability of applying the regularised PSO algorithm with the proposed cost function, which can be adjusted according to the need of the community, for real-time energy management.
187 citations
Cites background from "Optimal battery storage operation f..."
...Introduction The penetration of renewable energy sources (RESs), such as wind and solar, into existing distribution networks has increased significantly to meet the growing electricity demand and fulfil the target of reducing greenhouse gas emissions [1, 2]....
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TL;DR: The results of flexible resource planning indicate that retrofitting coal-fired units has remarkable performance on enhancing the power system flexibility in Qinghai and an empirical study on the Qinghai provincial power system of China validates the effectiveness of the presented method.
133 citations
Cites background from "Optimal battery storage operation f..."
...Hassan and Janko investigated how to use tariff incentives and time-of-use electricity prices to encourage deployment of PV with batteries, respectively [17,18]....
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TL;DR: The analysis contained in this paper gives researchers and practitioners in DER integration the information needed to select a tailored approach to their specific power network and system integration problems.
Abstract: This paper reviews approaches for facilitating the integration of small-scale distributed energy resources (DER) into low- and medium-voltage networks, in the context of the emerging transactive energy (TE) concept. We focus on three general categories: (i) uncoordinated approaches that only consider energy management of an individual user; (ii) coordinated approaches that orchestrate the response of several users by casting the energy management problem as an optimization problem; and (iii) peer-to-peer energy trading that aims to better utilize the DER by establishing decentralized energy markets. A second separate, but important, consideration is that DER integration methods can be implemented with diverse levels of network awareness, given their capability to address system or consumer interests. This paper systematically classifies the existing literature on DER integration approaches according to these categories. In doing so, a review of the methods in each category is presented, and differences between the categories are identified and explained through a comparative analysis. In addition, case studies examine technical implementation considerations but leave market aspects aside. The analysis contained in this paper gives researchers and practitioners in DER integration the information needed to select a tailored approach to their specific power network and system integration problems.
130 citations
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TL;DR: In this article, an optimal power management mechanism for grid connected photovoltaic (PV) systems with storage is presented, where the structure of a power supervisor based on an optimal predictive power scheduling algorithm is proposed.
Abstract: This paper presents an optimal power management mechanism for grid connected photovoltaic (PV) systems with storage. The objective is to help intensive penetration of PV production into the grid by proposing peak shaving service at the lowest cost. The structure of a power supervisor based on an optimal predictive power scheduling algorithm is proposed. Optimization is performed using Dynamic Programming and is compared with a simple ruled-based management. The particularity of this study remains first in the consideration of batteries ageing into the optimization process and second in the “day-ahead” approach of power management. Simulations and real conditions application are carried out over one exemplary day. In simulation, it points out that peak shaving is realized with the minimal cost, but especially that power fluctuations on the grid are reduced which matches with the initial objective of helping PV penetration into the grid. In real conditions, efficiency of the predictive schedule depends on accuracy of the forecasts, which leads to future works about optimal reactive power management.
902 citations
Additional excerpts
...An optimal power flow management framework for a grid connected PV with battery storage in order to maximise the peak shaving service is presented in [31]....
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TL;DR: In this article, a simulation model that investigates the economic viability of battery storage for residential PV in Germany under eight different electricity price scenarios from 2013 to 2022 is presented. And the model with a large number of different PV and storage capacities is run to determine the economically optimal configuration in terms of system size.
Abstract: Battery storage is generally considered an effective means for reducing the intermittency of electricity generated by solar photovoltaic (PV) systems. However, currently it remains unclear when and under which conditions battery storage can be profitably operated in residential PV systems without policy support. Based on a review of previous studies that have examined the economics of integrated PV-battery systems, in this paper we devise a simulation model that investigates the economic viability of battery storage for residential PV in Germany under eight different electricity price scenarios from 2013 to 2022. In contrast to previous forward-looking studies, we assume that no premium is paid for solar photovoltaic power and/or self-consumed electricity. Additionally, we run the model with a large number of different PV and storage capacities to determine the economically optimal configuration in terms of system size. We find that already in 2013 investments in storage solutions were economically viable for small PV systems. Given the assumptions of our model, the optimal size of both residential PV systems and battery storage rises significantly in the future. Higher electricity retail prices, lower electricity wholesale prices or limited access to the electricity wholesale market add to the profitability of storage. We conclude that additional policy incentives to foster investments in battery storage for residential PV in Germany will only be necessary in the short run. At the same time, the impending profitability of integrated PV-storage systems is likely to further spur the ongoing trend toward distributed electricity generation with major implications for the electricity sector.
467 citations
TL;DR: In this article, an economic assessment of residential PV battery systems was carried out and the cost-optimal configurations for various cost scenarios were determined based on the simulation results, and the results show that in the considered long-term scenario the conjunction of PV systems with batteries will be not only profitable but also the most economical solution.
369 citations
TL;DR: In this paper, the authors presented an optimization approach to choose such systems and their operating schedules using Berkeley Lab's Distributed Energy Resources Customer Adoption Model (DER-CAM), extended to incorporate electrical and thermal storage options.
Abstract: The deployment of small ( < 1-2 MW ) clusters of generators, heat and electrical storage, efficiency investments, and combined heat and power (CHP) applications (particularly involving heat-activated cooling) in commercial buildings promises significant benefits but poses many technical and financial challenges, both in system choice and its operation; if successful, such systems may be precursors to widespread microgrid deployment. The presented optimization approach to choosing such systems and their operating schedules uses Berkeley Lab's Distributed Energy Resources Customer Adoption Model (DER-CAM), extended to incorporate electrical and thermal storage options. DER-CAM chooses annual energy bill minimizing systems in a fully technology-neutral manner. An illustrative example for a hypothetical San Francisco hotel is reported. The chosen system includes one large reciprocating engine and an absorption chiller providing an estimated 11% cost savings and 8% carbon emission reductions under idealized circumstances.
366 citations
"Optimal battery storage operation f..." refers background in this paper
...Smart tariffs have the potential to encourage the adoption of distributed energy systems, as it has been widely used in California and Australia for managing high demand charges [17,18]....
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21 Jul 2013
TL;DR: In this article, a multiobjective optimization method is proposed to visualize the trade-offs between three objective functions: voltage regulation, peak power reduction, and annual cost, applied to a near future scenario, based on a real residential feeder.
Abstract: This paper investigates the potential of using battery energy storage systems in the public low-voltage distribution grid, to defer upgrades needed to increase the penetration of photovoltaics (PV). A multiobjective optimization method is proposed to visualize the trade-offs between three objective functions: voltage regulation, peak power reduction, and annual cost. The method is applied to a near-future scenario, based on a real residential feeder. The results provide insight into the dimensioning and the required specifications of the battery and the inverter. It is found that an inverter without batteries already achieves part of the objectives. Therefore, the added value of batteries to an inverter is discussed. Furthermore, a comparison between lithium-ion and lead-acid battery technologies is presented.
296 citations