A Coordinated Operation of Multiple Distributed Energy Resource Technologies for Arbitrage Benefit Enhancement

Abstract

Electric utilities may own capital intensive battery energy storage systems and micro turbine (MT) to cope against the uncertain environment created by large-scale integration of renewable energy sources (RESs) such as solar photovoltaic (SPV) and wind turbine (WT), etc. The introduction of dynamic electricity price model in distribution system has shifted paradigm to optimally manage distributed storage in order to get maximum possible arbitrage benefits along with improvement in system performance. This paper proposes a heuristic method to enhance several techno-economic benefits of distribution systems by coordinating available energy storages in the presence of RESs. Proposed approach independently manages economic operation of BESS whereas MT unit improves load profile of the system. The methodology envisages optimal solution after trying just few combinations of charging and discharging states of BESS by utilizing knowledge base driven approach of optimizing arbitrage benefits under dynamic price signal. Moreover, the untapped potential of MT unit is amicably utilized to reduce system stress. Proposed method considers dynamically varying system states yet the approach is straightforward and non-iterative. This makes the proposed method class apart from existing methods. The application results on a standard 33-bus distribution system highlights importance of the proposed methodology.