Optimal Battery Sizing for Frequency Regulation and Energy Arbitrage
Xuan Wu, Jenny Zhao, Antonio J. Conejo
Abstract
This paper proposes an optimization methodology for sizing and operating battery energy storage systems (BESS) in distribution networks. A BESS optimal operation for both frequency regulation and energy arbitrage, constrained by battery state-of-charge (SoC) requirements, is considered in the proposed optimization algorithm. We use utility historical data as input in a case study on a real-world distribution circuit. The results indicate that a BESS generally brings high profits by participating in the frequency regulation market and should be sized to its highest allowable power capacity rather than its energy capacity.
Topics & Concepts
SizingArbitrageBattery (electricity)State of chargeEngineeringEnergy (signal processing)Energy storagePower (physics)Computer scienceMathematical optimizationReliability engineeringEconomicsFinanceMathematicsVisual artsArtPhysicsStatisticsQuantum mechanicsSmart Grid Energy ManagementMicrogrid Control and OptimizationElectric Vehicles and Infrastructure