IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i6p1726-d520835.html
   My bibliography  Save this article

Generation of Alternative Battery Allocation Proposals in Distribution Systems by the Optimization of Different Economic Metrics within a Mathematical Model

Author

Listed:
  • Norberto Martinez

    (Department of Electrical Engineering, São Paulo State University (UNESP), Ilha Solteira, São Paulo 15385-000, Brazil)

  • Alejandra Tabares

    (Department of Electrical Engineering, São Paulo State University (UNESP), Ilha Solteira, São Paulo 15385-000, Brazil)

  • John F. Franco

    (School of Energy Engineering, São Paulo State University (UNESP), Rosana, São Paulo 19274-000, Brazil)

Abstract

Battery systems bring technical and economic advantages to electrical distribution systems (EDSs), as they conveniently store the surplus of cheap renewable generation for use at a more convenient time and contribute to peak shaving. Due to the high cost of batteries, technical and economic studies are needed to evaluate their correct allocation within the EDS. To contribute to this analysis, this paper proposes a stochastic mathematical model for the optimal battery allocation (OBA), which can be guided by the optimization of two different economic metrics: net present value (NPV) and internal rate of return (IRR). The effects of the OBA in the EDS are evaluated considering the stochastic variation of photovoltaic generation and load. Tests with the 33-node IEEE test system indicate that OBA results in voltage profile improvement (~1% at peak time), peak reduction (31.17%), increased photovoltaic hosting capacity (18.8%), and cost reduction (3.06%). Furthermore, it was found that the IRR metric leads to a different solution compared to the traditional NPV optimization due to its inherent consideration of the relation between cash flow and investment. Thus, both NPV and IRR-based allocation alternatives can be used by the decision maker to improve economic and technical operation of the EDS.

Suggested Citation

  • Norberto Martinez & Alejandra Tabares & John F. Franco, 2021. "Generation of Alternative Battery Allocation Proposals in Distribution Systems by the Optimization of Different Economic Metrics within a Mathematical Model," Energies, MDPI, vol. 14(6), pages 1-17, March.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:6:p:1726-:d:520835
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/6/1726/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/14/6/1726/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Steffen, Bjarne, 2020. "Estimating the cost of capital for renewable energy projects," Energy Economics, Elsevier, vol. 88(C).
    2. Zhao, Pan & Wang, Jiangfeng & Dai, Yiping, 2015. "Capacity allocation of a hybrid energy storage system for power system peak shaving at high wind power penetration level," Renewable Energy, Elsevier, vol. 75(C), pages 541-549.
    3. 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.
    4. Wade, N.S. & Taylor, P.C. & Lang, P.D. & Jones, P.R., 2010. "Evaluating the benefits of an electrical energy storage system in a future smart grid," Energy Policy, Elsevier, vol. 38(11), pages 7180-7188, November.
    5. Jannesar, Mohammad Rasol & Sedighi, Alireza & Savaghebi, Mehdi & Guerrero, Josep M., 2018. "Optimal placement, sizing, and daily charge/discharge of battery energy storage in low voltage distribution network with high photovoltaic penetration," Applied Energy, Elsevier, vol. 226(C), pages 957-966.
    6. Díaz-González, Francisco & Sumper, Andreas & Gomis-Bellmunt, Oriol & Villafáfila-Robles, Roberto, 2012. "A review of energy storage technologies for wind power applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 2154-2171.
    7. Denholm, Paul & Hand, Maureen, 2011. "Grid flexibility and storage required to achieve very high penetration of variable renewable electricity," Energy Policy, Elsevier, vol. 39(3), pages 1817-1830, March.
    8. Stocks, K. J., 1984. "Discount rate for technology assessment : An application to the energy sector," Energy Economics, Elsevier, vol. 6(3), pages 177-185, July.
    9. Hof, Julian & Schneider, Michael & Goeke, Dominik, 2017. "Solving the battery swap station location-routing problem with capacitated electric vehicles using an AVNS algorithm for vehicle-routing problems with intermediate stops," Transportation Research Part B: Methodological, Elsevier, vol. 97(C), pages 102-112.
    10. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhou, Hou Sheng & Passey, Rob & Bruce, Anna & Sproul, Alistair B., 2021. "A case study on the behaviour of residential battery energy storage systems during network demand peaks," Renewable Energy, Elsevier, vol. 180(C), pages 712-724.
    2. Diego Jose da Silva & Edmarcio Antonio Belati & Jesús M. López-Lezama, 2023. "A Mathematical Programming Approach for the Optimal Operation of Storage Systems, Photovoltaic and Wind Power Generation," Energies, MDPI, vol. 16(3), pages 1-24, January.
    3. Diego Jose da Silva & Edmarcio Antonio Belati & Jesús M. López-Lezama, 2024. "Enhancing Distribution Networks with Optimal BESS Sitting and Operation: A Weekly Horizon Optimization Approach," Sustainability, MDPI, vol. 16(17), pages 1-15, August.
    4. Zandrazavi, Seyed Farhad & Guzman, Cindy Paola & Pozos, Alejandra Tabares & Quiros-Tortos, Jairo & Franco, John Fredy, 2022. "Stochastic multi-objective optimal energy management of grid-connected unbalanced microgrids with renewable energy generation and plug-in electric vehicles," Energy, Elsevier, vol. 241(C).
    5. Jura Jurčević & Ivan Pavić & Nikolina Čović & Denis Dolinar & Davor Zoričić, 2022. "Estimation of Internal Rate of Return for Battery Storage Systems with Parallel Revenue Streams: Cycle-Cost vs. Multi-Objective Optimisation Approach," Energies, MDPI, vol. 15(16), pages 1-17, August.

    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. Chowdhury, Jahedul Islam & Balta-Ozkan, Nazmiye & Goglio, Pietro & Hu, Yukun & Varga, Liz & McCabe, Leah, 2020. "Techno-environmental analysis of battery storage for grid level energy services," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    2. Gallo, A.B. & Simões-Moreira, J.R. & Costa, H.K.M. & Santos, M.M. & Moutinho dos Santos, E., 2016. "Energy storage in the energy transition context: A technology review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 800-822.
    3. Martin, Nigel & Rice, John, 2021. "Power outages, climate events and renewable energy: Reviewing energy storage policy and regulatory options for Australia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    4. Morteza Zare Oskouei & Ayşe Aybike Şeker & Süleyman Tunçel & Emin Demirbaş & Tuba Gözel & Mehmet Hakan Hocaoğlu & Mehdi Abapour & Behnam Mohammadi-Ivatloo, 2022. "A Critical Review on the Impacts of Energy Storage Systems and Demand-Side Management Strategies in the Economic Operation of Renewable-Based Distribution Network," Sustainability, MDPI, vol. 14(4), pages 1-34, February.
    5. Saboori, Hedayat & Hemmati, Reza, 2017. "Maximizing DISCO profit in active distribution networks by optimal planning of energy storage systems and distributed generators," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 365-372.
    6. Kebede, Abraham Alem & Kalogiannis, Theodoros & Van Mierlo, Joeri & Berecibar, Maitane, 2022. "A comprehensive review of stationary energy storage devices for large scale renewable energy sources grid integration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    7. Saboori, Hedayat & Hemmati, Reza & Ghiasi, Seyyed Mohammad Sadegh & Dehghan, Shahab, 2017. "Energy storage planning in electric power distribution networks – A state-of-the-art review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 1108-1121.
    8. Paulo Rotella Junior & Luiz Célio Souza Rocha & Sandra Naomi Morioka & Ivan Bolis & Gianfranco Chicco & Andrea Mazza & Karel Janda, 2021. "Economic Analysis of the Investments in Battery Energy Storage Systems: Review and Current Perspectives," Energies, MDPI, vol. 14(9), pages 1-29, April.
    9. Antweiler, Werner, 2021. "Microeconomic models of electricity storage: Price Forecasting, arbitrage limits, curtailment insurance, and transmission line utilization," Energy Economics, Elsevier, vol. 101(C).
    10. Lai, Chun Sing & McCulloch, Malcolm D., 2017. "Levelized cost of electricity for solar photovoltaic and electrical energy storage," Applied Energy, Elsevier, vol. 190(C), pages 191-203.
    11. Seda Canbulat & Kutlu Balci & Onder Canbulat & I. Safak Bayram, 2021. "Techno-Economic Analysis of On-Site Energy Storage Units to Mitigate Wind Energy Curtailment: A Case Study in Scotland," Energies, MDPI, vol. 14(6), pages 1-20, March.
    12. 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.
    13. Jeanmonod, Guillaume & Wang, Ligang & Diethelm, Stefan & Maréchal, François & Van herle, Jan, 2019. "Trade-off designs of power-to-methane systems via solid-oxide electrolyzer and the application to biogas upgrading," Applied Energy, Elsevier, vol. 247(C), pages 572-581.
    14. Argyrou, Maria C. & Christodoulides, Paul & Kalogirou, Soteris A., 2018. "Energy storage for electricity generation and related processes: Technologies appraisal and grid scale applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 804-821.
    15. Henok Ayele Behabtu & Maarten Messagie & Thierry Coosemans & Maitane Berecibar & Kinde Anlay Fante & Abraham Alem Kebede & Joeri Van Mierlo, 2020. "A Review of Energy Storage Technologies’ Application Potentials in Renewable Energy Sources Grid Integration," Sustainability, MDPI, vol. 12(24), pages 1-20, December.
    16. Guandalini, Giulio & Campanari, Stefano & Romano, Matteo C., 2015. "Power-to-gas plants and gas turbines for improved wind energy dispatchability: Energy and economic assessment," Applied Energy, Elsevier, vol. 147(C), pages 117-130.
    17. Guo, Cong & Xu, Yujie & Zhang, Xinjing & Guo, Huan & Zhou, Xuezhi & Liu, Chang & Qin, Wei & Li, Wen & Dou, Binlin & Chen, Haisheng, 2017. "Performance analysis of compressed air energy storage systems considering dynamic characteristics of compressed air storage," Energy, Elsevier, vol. 135(C), pages 876-888.
    18. Meng, Hui & Wang, Meihong & Olumayegun, Olumide & Luo, Xiaobo & Liu, Xiaoyan, 2019. "Process design, operation and economic evaluation of compressed air energy storage (CAES) for wind power through modelling and simulation," Renewable Energy, Elsevier, vol. 136(C), pages 923-936.
    19. Yang, Yuqing & Bremner, Stephen & Menictas, Chris & Kay, Merlinde, 2022. "Forecasting error processing techniques and frequency domain decomposition for forecasting error compensation and renewable energy firming in hybrid systems," Applied Energy, Elsevier, vol. 313(C).
    20. He, Wei & Wang, Jihong, 2017. "Feasibility study of energy storage by concentrating/desalinating water: Concentrated Water Energy Storage," Applied Energy, Elsevier, vol. 185(P1), pages 872-884.

    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:gam:jeners:v:14:y:2021:i:6:p:1726-:d:520835. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.