IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v239y2019icp356-372.html
   My bibliography  Save this article

Multi-objective optimization of energy arbitrage in community energy storage systems using different battery technologies

Author

Listed:
  • Terlouw, Tom
  • AlSkaif, Tarek
  • Bauer, Christian
  • van Sark, Wilfried

Abstract

The power system requires an additional amount of flexibility to process the large-scale integration of renewable energy sources. Community Energy Storage (CES) is one of the solutions to offer flexibility. In this paper two scenarios of CES ownership are proposed. Firstly, an Energy Arbitrage (EA) scenario is studied where an aggregator aims to minimize costs and CO2-emissions of an energy portfolio. Secondly, an Energy Arbitrage - Peak Shaving (EA-PS) scenario is assessed, which is based on a shared ownership between a Distribution System Operator (DSO) and an aggregator. A multi-objective Mixed Integer Linear Programming (MILP) optimization model is developed to minimize the operation costs and CO2-emissions of a community situated in Cernier (Switzerland), using different battery technologies in the CES system. The results demonstrate a profitable system design for all Lithium-ion-Batteries (LiBs) and the Vanadium Redox Flow Battery (VRFB), for both the EA and EA-PS scenarios. The economic and environmental performance of the EA-PS scenario is slightly worse compared to the EA scenario, due to power boundaries on grid absorption and injection to achieve peak shaving. Overall, the differences between the EA and EA-PS scenarios, in economic and environmental performance, are small. Therefore, the EA-PS is recommended to prevent problematic loads on the distribution transformer. In addition, the Pareto frontiers demonstrate that LiBs perform best on both economic and environmental performance, with the best economic and environmental performance for the Lithium-Nickel-Manganese-Cobalt (NMC-C) battery.

Suggested Citation

  • Terlouw, Tom & AlSkaif, Tarek & Bauer, Christian & van Sark, Wilfried, 2019. "Multi-objective optimization of energy arbitrage in community energy storage systems using different battery technologies," Applied Energy, Elsevier, vol. 239(C), pages 356-372.
    • Handle: RePEc:eee:appene:v:239:y:2019:i:c:p:356-372
    DOI: 10.1016/j.apenergy.2019.01.227
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261919302478
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2019.01.227?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Malhotra, Abhishek & Battke, Benedikt & Beuse, Martin & Stephan, Annegret & Schmidt, Tobias, 2016. "Use cases for stationary battery technologies: A review of the literature and existing projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 705-721.
    2. Sugiyama, Masahiro, 2012. "Climate change mitigation and electrification," Energy Policy, Elsevier, vol. 44(C), pages 464-468.
    3. Burger, Scott & Chaves-Ávila, Jose Pablo & Batlle, Carlos & Pérez-Arriaga, Ignacio J., 2017. "A review of the value of aggregators in electricity systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 395-405.
    4. Parra, David & Norman, Stuart A. & Walker, Gavin S. & Gillott, Mark, 2016. "Optimum community energy storage system for demand load shifting," Applied Energy, Elsevier, vol. 174(C), pages 130-143.
    5. Katsanevakis, Markos & Stewart, Rodney A. & Lu, Junwei, 2017. "Aggregated applications and benefits of energy storage systems with application-specific control methods: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 719-741.
    6. van der Stelt, Sander & AlSkaif, Tarek & van Sark, Wilfried, 2018. "Techno-economic analysis of household and community energy storage for residential prosumers with smart appliances," Applied Energy, Elsevier, vol. 209(C), pages 266-276.
    7. Sardi, Junainah & Mithulananthan, N. & Gallagher, M. & Hung, Duong Quoc, 2017. "Multiple community energy storage planning in distribution networks using a cost-benefit analysis," Applied Energy, Elsevier, vol. 190(C), pages 453-463.
    8. Rob J. Hyndman & Andrey V. Kostenko, 2007. "Minimum Sample Size requirements for Seasonal Forecasting Models," Foresight: The International Journal of Applied Forecasting, International Institute of Forecasters, issue 6, pages 12-15, Spring.
    9. Azizivahed, Ali & Narimani, Hossein & Fathi, Mehdi & Naderi, Ehsan & Safarpour, Hamid Reza & Narimani, Mohammad Rasoul, 2018. "Multi-objective dynamic distribution feeder reconfiguration in automated distribution systems," Energy, Elsevier, vol. 147(C), pages 896-914.
    10. Reza Arghandeh & Jeremy Woyak & Ahmet Onen & Jaesung Jung & Robert P. Broadwater, 2014. "Economic Optimal Operation of Community Energy Storage Systems in Competitive Energy Markets," Papers 1407.0433, arXiv.org, revised Sep 2014.
    11. Arghandeh, Reza & Woyak, Jeremy & Onen, Ahmet & Jung, Jaesung & Broadwater, Robert P., 2014. "Economic optimal operation of Community Energy Storage systems in competitive energy markets," Applied Energy, Elsevier, vol. 135(C), pages 71-80.
    12. Fischer, David & Wolf, Tobias & Wapler, Jeannette & Hollinger, Raphael & Madani, Hatef, 2017. "Model-based flexibility assessment of a residential heat pump pool," Energy, Elsevier, vol. 118(C), pages 853-864.
    13. Verzijlbergh, R.A. & De Vries, L.J. & Dijkema, G.P.J. & Herder, P.M., 2017. "Institutional challenges caused by the integration of renewable energy sources in the European electricity sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 660-667.
    14. Boogen, Nina & Datta, Souvik & Filippini, Massimo, 2017. "Demand-side management by electric utilities in Switzerland: Analyzing its impact on residential electricity demand," Energy Economics, Elsevier, vol. 64(C), pages 402-414.
    15. Xiaolin Ayón & María Ángeles Moreno & Julio Usaola, 2017. "Aggregators’ Optimal Bidding Strategy in Sequential Day-Ahead and Intraday Electricity Spot Markets," Energies, MDPI, vol. 10(4), pages 1-20, April.
    16. A. Stephan & B. Battke & M. D. Beuse & J. H. Clausdeinken & T. S. Schmidt, 2016. "Limiting the public cost of stationary battery deployment by combining applications," Nature Energy, Nature, vol. 1(7), pages 1-9, July.
    17. Soares, João & Fotouhi Ghazvini, Mohammad Ali & Vale, Zita & de Moura Oliveira, P.B., 2016. "A multi-objective model for the day-ahead energy resource scheduling of a smart grid with high penetration of sensitive loads," Applied Energy, Elsevier, vol. 162(C), pages 1074-1088.
    18. Parra, David & Swierczynski, Maciej & Stroe, Daniel I. & Norman, Stuart.A. & Abdon, Andreas & Worlitschek, Jörg & O’Doherty, Travis & Rodrigues, Lucelia & Gillott, Mark & Zhang, Xiaojin & Bauer, Chris, 2017. "An interdisciplinary review of energy storage for communities: Challenges and perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 730-749.
    19. Luo, Xing & Wang, Jihong & Dooner, Mark & Clarke, Jonathan, 2015. "Overview of current development in electrical energy storage technologies and the application potential in power system operation," Applied Energy, Elsevier, vol. 137(C), pages 511-536.
    20. Pappas, S.Sp. & Ekonomou, L. & Karamousantas, D.Ch. & Chatzarakis, G.E. & Katsikas, S.K. & Liatsis, P., 2008. "Electricity demand loads modeling using AutoRegressive Moving Average (ARMA) models," Energy, Elsevier, vol. 33(9), pages 1353-1360.
    21. Narimani, Hossein & Razavi, Seyed-Ehsan & Azizivahed, Ali & Naderi, Ehsan & Fathi, Mehdi & Ataei, Mohammad H. & Narimani, Mohammad Rasoul, 2018. "A multi-objective framework for multi-area economic emission dispatch," Energy, Elsevier, vol. 154(C), pages 126-142.
    22. Weron, Rafał, 2014. "Electricity price forecasting: A review of the state-of-the-art with a look into the future," International Journal of Forecasting, Elsevier, vol. 30(4), pages 1030-1081.
    23. Wang, Xiaonan & Palazoglu, Ahmet & El-Farra, Nael H., 2015. "Operational optimization and demand response of hybrid renewable energy systems," Applied Energy, Elsevier, vol. 143(C), pages 324-335.
    24. Weber, Christoph, 2010. "Adequate intraday market design to enable the integration of wind energy into the European power systems," Energy Policy, Elsevier, vol. 38(7), pages 3155-3163, July.
    25. Lampropoulos, Ioannis & van den Broek, Machteld & van der Hoofd, Erik & Hommes, Klaas & van Sark, Wilfried, 2018. "A system perspective to the deployment of flexibility through aggregator companies in the Netherlands," Energy Policy, Elsevier, vol. 118(C), pages 534-551.
    26. Kannan, Ramachandran & Turton, Hal, 2016. "Long term climate change mitigation goals under the nuclear phase out policy: The Swiss energy system transition," Energy Economics, Elsevier, vol. 55(C), pages 211-222.
    27. Vaghefi, A. & Jafari, M.A. & Bisse, Emmanuel & Lu, Y. & Brouwer, J., 2014. "Modeling and forecasting of cooling and electricity load demand," Applied Energy, Elsevier, vol. 136(C), pages 186-196.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Terlouw, Tom & AlSkaif, Tarek & Bauer, Christian & van Sark, Wilfried, 2019. "Optimal energy management in all-electric residential energy systems with heat and electricity storage," Applied Energy, Elsevier, vol. 254(C).
    2. Koirala, Binod Prasad & van Oost, Ellen & van der Windt, Henny, 2018. "Community energy storage: A responsible innovation towards a sustainable energy system?," Applied Energy, Elsevier, vol. 231(C), pages 570-585.
    3. Fabian Scheller & Robert Burkhardt & Robert Schwarzeit & Russell McKenna & Thomas Bruckner, 2020. "Competition between simultaneous demand-side flexibility options: The case of community electricity storage systems," Papers 2011.05809, arXiv.org.
    4. Scheller, Fabian & Burkhardt, Robert & Schwarzeit, Robert & McKenna, Russell & Bruckner, Thomas, 2020. "Competition between simultaneous demand-side flexibility options: the case of community electricity storage systems," Applied Energy, Elsevier, vol. 269(C).
    5. Parra, David & Swierczynski, Maciej & Stroe, Daniel I. & Norman, Stuart.A. & Abdon, Andreas & Worlitschek, Jörg & O’Doherty, Travis & Rodrigues, Lucelia & Gillott, Mark & Zhang, Xiaojin & Bauer, Chris, 2017. "An interdisciplinary review of energy storage for communities: Challenges and perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 730-749.
    6. Litjens, G.B.M.A. & Worrell, E. & van Sark, W.G.J.H.M., 2018. "Economic benefits of combining self-consumption enhancement with frequency restoration reserves provision by photovoltaic-battery systems," Applied Energy, Elsevier, vol. 223(C), pages 172-187.
    7. Gährs, Swantje & Knoefel, Jan, 2020. "Stakeholder demands and regulatory framework for community energy storage with a focus on Germany," Energy Policy, Elsevier, vol. 144(C).
    8. Walker, Awnalisa & Kwon, Soongeol, 2021. "Design of structured control policy for shared energy storage in residential community: A stochastic optimization approach," Applied Energy, Elsevier, vol. 298(C).
    9. Okur, Özge & Heijnen, Petra & Lukszo, Zofia, 2021. "Aggregator’s business models in residential and service sectors: A review of operational and financial aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    10. Walker, Awnalisa & Kwon, Soongeol, 2021. "Analysis on impact of shared energy storage in residential community: Individual versus shared energy storage," Applied Energy, Elsevier, vol. 282(PA).
    11. Hafiz, Faeza & Rodrigo de Queiroz, Anderson & Fajri, Poria & Husain, Iqbal, 2019. "Energy management and optimal storage sizing for a shared community: A multi-stage stochastic programming approach," Applied Energy, Elsevier, vol. 236(C), pages 42-54.
    12. Weitzel, Timm & Glock, Christoph H., 2018. "Energy management for stationary electric energy storage systems: A systematic literature review," European Journal of Operational Research, Elsevier, vol. 264(2), pages 582-606.
    13. Abdullah M. Alabdullatif & Enrico H. Gerding & Alvaro Perez-Diaz, 2020. "Market Design and Trading Strategies for Community Energy Markets with Storage and Renewable Supply," Energies, MDPI, vol. 13(4), pages 1-31, February.
    14. Das, Choton K. & Bass, Octavian & Kothapalli, Ganesh & Mahmoud, Thair S. & Habibi, Daryoush, 2018. "Optimal placement of distributed energy storage systems in distribution networks using artificial bee colony algorithm," Applied Energy, Elsevier, vol. 232(C), pages 212-228.
    15. Kalkbrenner, Bernhard J., 2019. "Residential vs. community battery storage systems – Consumer preferences in Germany," Energy Policy, Elsevier, vol. 129(C), pages 1355-1363.
    16. Ebrahimi, Mahyar, 2020. "Storing electricity as thermal energy at community level for demand side management," Energy, Elsevier, vol. 193(C).
    17. Seyedfarzad Sarfarazi & Marc Deissenroth-Uhrig & Valentin Bertsch, 2020. "Aggregation of Households in Community Energy Systems: An Analysis from Actors’ and Market Perspectives," Energies, MDPI, vol. 13(19), pages 1-37, October.
    18. Das, Choton K. & Bass, Octavian & Mahmoud, Thair S. & Kothapalli, Ganesh & Mousavi, Navid & Habibi, Daryoush & Masoum, Mohammad A.S., 2019. "Optimal allocation of distributed energy storage systems to improve performance and power quality of distribution networks," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    19. van der Stelt, Sander & AlSkaif, Tarek & van Sark, Wilfried, 2018. "Techno-economic analysis of household and community energy storage for residential prosumers with smart appliances," Applied Energy, Elsevier, vol. 209(C), pages 266-276.
    20. Han, Xiaojuan & Zhang, Hua & Yu, Xiaoling & Wang, Lina, 2016. "Economic evaluation of grid-connected micro-grid system with photovoltaic and energy storage under different investment and financing models," Applied Energy, Elsevier, vol. 184(C), pages 103-118.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:239:y:2019:i:c:p:356-372. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.