Optimal Sizing of BESS for Customer Demand Management
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AbstractThe paper proposes an optimal sizing method of a customer's Battery Energy Storage System(BESS) which aims at managing the electricity demand of the customer to minimize electricity cost under the time of use(TOU) pricing. Peak load limit of the customer and charging and discharging schedules of the BESS are optimized on annual basis to minimize annual electricity cost, which consists of peak load related basic cost and actual usage cost(energy cost). The optimal scheduling is used to assess the maximum cost savings for all sets of candidate capacities of BESS. An optimal size of BESS is determined from the cost reduction rate(hereinafter reduction rate) curves via capacity of BESS. Case study uses real data from industry customer and shows how the proposed method can be employed to optimally design the size of BESS for customer demand management.
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