IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v307y2022ics0306261921014410.html
   My bibliography  Save this article

Optimal sizing and operations of shared energy storage systems in distribution networks: A bi-level programming approach

Author

Listed:
  • Ma, Mingtao
  • Huang, Huijun
  • Song, Xiaoling
  • Peña-Mora, Feniosky
  • Zhang, Zhe
  • Chen, Jie

Abstract

Rather than using individually distributed energy storage frameworks, shared energy storage is being exploited because of its low cost and high efficiency. However, proper sizing and operations approaches are still required to take advantage of shared energy storage in distribution networks. This paper proposes a bi-level model to optimize the size and operations of shared energy storage in hybrid renewable-resource power generation systems. The upper-level model maximizes the benefits of sharing energy storage for the involved stakeholders (transmission and distribution system operators, shared energy storage operators and the various power plant owners) and the lower-level model minimizes the hybrid system operating costs. The benefits of this system were found to be: (1) reductions in wind and solar power curtailment and coal-fired generation costs; (2) peak shaving; (3) frequency regulation; and (4) a deferral of upgrades to power transmission and distribution facilities. To fully realize the long-term planning and short-term operational interactions of shared energy storage, a bi-level nested genetic algorithm was designed to solve the proposed model. By continuously updating the solutions, a set of optimal solutions were generated. To validate the approach, numerical tests were conducted, with the results showing that by properly sizing and operating the shared energy storage in distribution networks, the wind curtailment rate was reduced by about 10.2%, the solar curtailment rate was reduced by 14.2%, and the stakeholder benefits were around 154 million dollars. Further discussion is given on the benefits of shared energy storage investments.

Suggested Citation

  • Ma, Mingtao & Huang, Huijun & Song, Xiaoling & Peña-Mora, Feniosky & Zhang, Zhe & Chen, Jie, 2022. "Optimal sizing and operations of shared energy storage systems in distribution networks: A bi-level programming approach," Applied Energy, Elsevier, vol. 307(C).
    • Handle: RePEc:eee:appene:v:307:y:2022:i:c:s0306261921014410
    DOI: 10.1016/j.apenergy.2021.118170
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261921014410
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2021.118170?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. Zhang, Chunyu & Wang, Qi & Wang, Jianhui & Korpås, Magnus & Pinson, Pierre & Østergaard, Jacob & Khodayar, Mohammad E., 2016. "Trading strategies for distribution company with stochastic distributed energy resources," Applied Energy, Elsevier, vol. 177(C), pages 625-635.
    2. 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.
    3. Lombardi, P. & Schwabe, F., 2017. "Sharing economy as a new business model for energy storage systems," Applied Energy, Elsevier, vol. 188(C), pages 485-496.
    4. Subburaj, Anitha S. & Pushpakaran, Bejoy N. & Bayne, Stephen B., 2015. "Overview of grid connected renewable energy based battery projects in USA," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 219-234.
    5. Rodrigues, Daniel L. & Ye, Xianming & Xia, Xiaohua & Zhu, Bing, 2020. "Battery energy storage sizing optimisation for different ownership structures in a peer-to-peer energy sharing community," Applied Energy, Elsevier, vol. 262(C).
    6. 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).
    7. Harjanne, Atte & Korhonen, Janne M., 2019. "Abandoning the concept of renewable energy," Energy Policy, Elsevier, vol. 127(C), pages 330-340.
    8. Ranaboldo, Matteo & García-Villoria, Alberto & Ferrer-Martí, Laia & Pastor Moreno, Rafael, 2015. "A meta-heuristic method to design off-grid community electrification projects with renewable energies," Energy, Elsevier, vol. 93(P2), pages 2467-2482.
    9. Zeng, Bo & Wen, Junqiang & Shi, Jinyue & Zhang, Jianhua & Zhang, Yuying, 2016. "A multi-level approach to active distribution system planning for efficient renewable energy harvesting in a deregulated environment," Energy, Elsevier, vol. 96(C), pages 614-624.
    10. 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.
    11. Sheha, Moataz & Mohammadi, Kasra & Powell, Kody, 2021. "Techno-economic analysis of the impact of dynamic electricity prices on solar penetration in a smart grid environment with distributed energy storage," Applied Energy, Elsevier, vol. 282(PA).
    12. Wang, Hongye & Su, Bin & Mu, Hailin & Li, Nan & Gui, Shusen & Duan, Ye & Jiang, Bo & Kong, Xue, 2020. "Optimal way to achieve renewable portfolio standard policy goals from the electricity generation, transmission, and trading perspectives in southern China," Energy Policy, Elsevier, vol. 139(C).
    13. Li, Guoqing & Zhang, Rufeng & Jiang, Tao & Chen, Houhe & Bai, Linquan & Cui, Hantao & Li, Xiaojing, 2017. "Optimal dispatch strategy for integrated energy systems with CCHP and wind power," Applied Energy, Elsevier, vol. 192(C), pages 408-419.
    14. Rajanna, S. & Saini, R.P., 2016. "Development of optimal integrated renewable energy model with battery storage for a remote Indian area," Energy, Elsevier, vol. 111(C), pages 803-817.
    15. Keck, Felix & Lenzen, Manfred, 2021. "Drivers and benefits of shared demand-side battery storage – an Australian case study," Energy Policy, Elsevier, vol. 149(C).
    16. Wang, Hongye & Su, Bin & Mu, Hailin & Li, Nan & Jiang, Bo & Kong, Xue, 2019. "Optimization of electricity generation and interprovincial trading strategies in Southern China," Energy, Elsevier, vol. 174(C), pages 696-707.
    17. Felling, Tim, 2021. "Development of a genetic algorithm and its application to a bi-level problem of system cost optimal electricity price zone configurations," Energy Economics, Elsevier, vol. 101(C).
    18. Mahdavi, Sajad & Hemmati, Reza & Jirdehi, Mehdi Ahmadi, 2018. "Two-level planning for coordination of energy storage systems and wind-solar-diesel units in active distribution networks," Energy, Elsevier, vol. 151(C), pages 954-965.
    19. Chen, Cong & Sun, Hongbin & Shen, Xinwei & Guo, Ye & Guo, Qinglai & Xia, Tian, 2019. "Two-stage robust planning-operation co-optimization of energy hub considering precise energy storage economic model," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    20. Simla, Tomasz & Stanek, Wojciech, 2020. "Reducing the impact of wind farms on the electric power system by the use of energy storage," Renewable Energy, Elsevier, vol. 145(C), pages 772-782.
    21. Zhao, Bo & Zhang, Xuesong & Li, Peng & Wang, Ke & Xue, Meidong & Wang, Caisheng, 2014. "Optimal sizing, operating strategy and operational experience of a stand-alone microgrid on Dongfushan Island," Applied Energy, Elsevier, vol. 113(C), pages 1656-1666.
    22. Das, Choton K. & Bass, Octavian & Kothapalli, Ganesh & Mahmoud, Thair S. & Habibi, Daryoush, 2018. "Overview of energy storage systems in distribution networks: Placement, sizing, operation, and power quality," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 1205-1230.
    23. Kong, Xiangyu & Sun, Fangyuan & Huo, Xianxu & Li, Xue & Shen, Yu, 2020. "Hierarchical optimal scheduling method of heat-electricity integrated energy system based on Power Internet of Things," Energy, Elsevier, vol. 210(C).
    24. Zhu, Tao & Lot, Roberto & Wills, Richard G.A. & Yan, Xingda, 2020. "Sizing a battery-supercapacitor energy storage system with battery degradation consideration for high-performance electric vehicles," Energy, Elsevier, vol. 208(C).
    25. Al-Ghussain, Loiy & Abubaker, Ahmad M. & Darwish Ahmad, Adnan, 2021. "Superposition of Renewable-Energy Supply from Multiple Sites Maximizes Demand-Matching: Towards 100% Renewable Grids in 2050," Applied Energy, Elsevier, vol. 284(C).
    26. Quashie, Mike & Marnay, Chris & Bouffard, François & Joós, Géza, 2018. "Optimal planning of microgrid power and operating reserve capacity," Applied Energy, Elsevier, vol. 210(C), pages 1229-1236.
    27. Wang, Bing & Wang, Qian & Wei, Yi-Ming & Li, Zhi-Ping, 2018. "Role of renewable energy in China’s energy security and climate change mitigation: An index decomposition analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 187-194.
    28. Ju, Liwei & Wu, Jing & Lin, Hongyu & Tan, Qinliang & Li, Gen & Tan, Zhongfu & Li, Jiayu, 2020. "Robust purchase and sale transactions optimization strategy for electricity retailers with energy storage system considering two-stage demand response," Applied Energy, Elsevier, vol. 271(C).
    29. Zakeri, Behnam & Syri, Sanna, 2015. "Electrical energy storage systems: A comparative life cycle cost analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 569-596.
    30. Nemati, Mohsen & Braun, Martin & Tenbohlen, Stefan, 2018. "Optimization of unit commitment and economic dispatch in microgrids based on genetic algorithm and mixed integer linear programming," Applied Energy, Elsevier, vol. 210(C), pages 944-963.
    31. Baringo, Luis & Boffino, Luigi & Oggioni, Giorgia, 2020. "Robust expansion planning of a distribution system with electric vehicles, storage and renewable units," Applied Energy, Elsevier, vol. 265(C).
    32. Jiang, Xin & Jin, Yang & Zheng, Xueyuan & Hu, Guobao & Zeng, Qingshan, 2020. "Optimal configuration of grid-side battery energy storage system under power marketization," Applied Energy, Elsevier, vol. 272(C).
    33. Trivedi, Anupam & Chong Aih, Hau & Srinivasan, Dipti, 2020. "A stochastic cost–benefit analysis framework for allocating energy storage system in distribution network for load leveling," Applied Energy, Elsevier, vol. 280(C).
    34. Ho, Wai Shin & Macchietto, Sandro & Lim, Jeng Shiun & Hashim, Haslenda & Muis, Zarina Ab. & Liu, Wen Hui, 2016. "Optimal scheduling of energy storage for renewable energy distributed energy generation system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1100-1107.
    35. Kim, Wook-Won & Shin, Je-Seok & Kim, Sung-Yul & Kim, Jin-O., 2017. "Operation scheduling for an energy storage system considering reliability and aging," Energy, Elsevier, vol. 141(C), pages 389-397.
    36. Yanguas Parra, Paola & Hauenstein, Christian & Oei, Pao-Yu, 2021. "The death valley of coal – Modelling COVID-19 recovery scenarios for steam coal markets," Applied Energy, Elsevier, vol. 288(C).
    37. Li, Shenglin & Zhu, Jizhong & Chen, Ziyu & Luo, Tengyan, 2021. "Double-layer energy management system based on energy sharing cloud for virtual residential microgrid," Applied Energy, Elsevier, vol. 282(PA).
    38. Li, Jinghua & Lu, Bo & Wang, Zhibang & Zhu, Mengshu, 2021. "Bi-level optimal planning model for energy storage systems in a virtual power plant," Renewable Energy, Elsevier, vol. 165(P2), pages 77-95.
    39. Li, Guoqing & Zhang, Rufeng & Jiang, Tao & Chen, Houhe & Bai, Linquan & Li, Xiaojing, 2017. "Security-constrained bi-level economic dispatch model for integrated natural gas and electricity systems considering wind power and power-to-gas process," Applied Energy, Elsevier, vol. 194(C), pages 696-704.
    40. Saif Benjaafar & Ming Hu, 2020. "Operations Management in the Age of the Sharing Economy: What Is Old and What Is New?," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 93-101, January.
    41. Mufutau Opeyemi, Bello, 2021. "Path to sustainable energy consumption: The possibility of substituting renewable energy for non-renewable energy," Energy, Elsevier, vol. 228(C).
    42. Li, Rui & Wang, Wei & Wu, Xuezhi & Tang, Fen & Chen, Zhe, 2019. "Cooperative planning model of renewable energy sources and energy storage units in active distribution systems: A bi-level model and Pareto analysis," Energy, Elsevier, vol. 168(C), pages 30-42.
    43. Song, Xiaoling & Wang, Yudong & Zhang, Zhe & Shen, Charles & Peña-Mora, Feniosky, 2021. "Economic-environmental equilibrium-based bi-level dispatch strategy towards integrated electricity and natural gas systems," Applied Energy, Elsevier, vol. 281(C).
    44. De Vivero-Serrano, Gustavo & Bruninx, Kenneth & Delarue, Erik, 2019. "Implications of bid structures on the offering strategies of merchant energy storage systems," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    45. Ranaboldo, Matteo & García-Villoria, Alberto & Ferrer-Martí, Laia & Pastor Moreno, Rafael, 2014. "A heuristic method to design autonomous village electrification projects with renewable energies," Energy, Elsevier, vol. 73(C), pages 96-109.
    46. Liu, Jingkun & Zhang, Ning & Kang, Chongqing & Kirschen, Daniel & Xia, Qing, 2017. "Cloud energy storage for residential and small commercial consumers: A business case study," Applied Energy, Elsevier, vol. 188(C), pages 226-236.
    47. Sidhu, Arjan S. & Pollitt, Michael G. & Anaya, Karim L., 2018. "A social cost benefit analysis of grid-scale electrical energy storage projects: A case study," Applied Energy, Elsevier, vol. 212(C), pages 881-894.
    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. Han, Xiaojuan & Li, Jiarong & Zhang, Zhewen, 2023. "Dynamic game optimization control for shared energy storage in multiple application scenarios considering energy storage economy," Applied Energy, Elsevier, vol. 350(C).
    2. Song, Xiaoling & Zhang, Huqing & Fan, Lurong & Zhang, Zhe & Peña-Mora, Feniosky, 2023. "Planning shared energy storage systems for the spatio-temporal coordination of multi-site renewable energy sources on the power generation side," Energy, Elsevier, vol. 282(C).
    3. He, Ye & Wu, Hongbin & Wu, Andrew Y. & Li, Peng & Ding, Ming, 2024. "Optimized shared energy storage in a peer-to-peer energy trading market: Two-stage strategic model regards bargaining and evolutionary game theory," Renewable Energy, Elsevier, vol. 224(C).
    4. Li, Qi & Xiao, Xukang & Pu, Yuchen & Luo, Shuyu & Liu, Hong & Chen, Weirong, 2023. "Hierarchical optimal scheduling method for regional integrated energy systems considering electricity-hydrogen shared energy," Applied Energy, Elsevier, vol. 349(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. Xia, Yuanxing & Xu, Qingshan & Chen, Lu & Du, Pengwei, 2022. "The flexible roles of distributed energy storages in peer-to-peer transactive energy market: A state-of-the-art review," Applied Energy, Elsevier, vol. 327(C).
    7. Kang, Hyuna & Jung, Seunghoon & Lee, Minhyun & Hong, Taehoon, 2022. "How to better share energy towards a carbon-neutral city? A review on application strategies of battery energy storage system in city," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    8. Li, Haoran & Zhang, Chenghui & Sun, Bo, 2021. "Optimal design for component capacity of integrated energy system based on the active dispatch mode of multiple energy storages," Energy, Elsevier, vol. 227(C).
    9. Oh, Eunsung & Son, Sung-Yong, 2020. "Theoretical energy storage system sizing method and performance analysis for wind power forecast uncertainty management," Renewable Energy, Elsevier, vol. 155(C), pages 1060-1069.
    10. Hui Wang & Jun Wang & Zailin Piao & Xiaofang Meng & Chao Sun & Gang Yuan & Sitong Zhu, 2020. "The Optimal Allocation and Operation of an Energy Storage System with High Penetration Grid-Connected Photovoltaic Systems," Sustainability, MDPI, vol. 12(15), pages 1-22, July.
    11. Li, Rui & Wang, Wei & Wu, Xuezhi & Tang, Fen & Chen, Zhe, 2019. "Cooperative planning model of renewable energy sources and energy storage units in active distribution systems: A bi-level model and Pareto analysis," Energy, Elsevier, vol. 168(C), pages 30-42.
    12. Zhang, Wen-Yi & Zheng, Boshen & Wei, Wei & Chen, Laijun & Mei, Shengwei, 2022. "Peer-to-peer transactive mechanism for residential shared energy storage," Energy, Elsevier, vol. 246(C).
    13. Talihati, Baligen & Tao, Shengyu & Fu, Shiyi & Zhang, Bowen & Fan, Hongtao & Li, Qifen & Lv, Xiaodong & Sun, Yaojie & Wang, Yu, 2024. "Energy storage sharing in residential communities with controllable loads for enhanced operational efficiency and profitability," Applied Energy, Elsevier, vol. 373(C).
    14. Chen, Xi & Liu, Zhongbing & Wang, Pengcheng & Li, Benjia & Liu, Ruimiao & Zhang, Ling & Zhao, Chengliang & Luo, Songqin, 2023. "Multi-objective optimization of battery capacity of grid-connected PV-BESS system in hybrid building energy sharing community considering time-of-use tariff," Applied Energy, Elsevier, vol. 350(C).
    15. Bian, Yifan & Xie, Lirong & Ye, Jiahao & Ma, Lan, 2024. "A new shared energy storage business model for data center clusters considering energy storage degradation," Renewable Energy, Elsevier, vol. 225(C).
    16. Qiao, Jinpeng & Mi, Yang & Shen, Jie & Lu, Changkun & Cai, Pengcheng & Ma, Siyuan & Wang, Peng, 2025. "Optimization schedule strategy of active distribution network based on microgrid group and shared energy storage," Applied Energy, Elsevier, vol. 377(PD).
    17. 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).
    18. Gu, Chenjia & Wang, Jianxue & Zhang, Yao & Li, Qingtao & Chen, Yang, 2022. "Optimal energy storage planning for stacked benefits in power distribution network," Renewable Energy, Elsevier, vol. 195(C), pages 366-380.
    19. 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.
    20. Xie, Yulong & Li, Lee & Hou, Tianyu & Luo, Kang & Xu, Zhenyu & Dai, Mingcheng & Zhang, Lixiong, 2024. "Shared energy storage configuration in distribution networks: A multi-agent tri-level programming approach," Applied Energy, Elsevier, vol. 372(C).

    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:307:y:2022:i:c:s0306261921014410. 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.