Battery energy storage sizing for commercial customers

Abstract

Commercial and industrial (C&I) electricity customers are not only charged for their energy consumption but also for the maximum monthly power that they draw from the network. The C&I customers with an installed battery energy storage (BES) can benefit from the price variations during the day by intelligently charging and discharging the BES and ensure energy payment reduction while at the same time use the BES to shave the peak demand and ensure demand payment reduction. An optimal BES sizing model for these customers is proposed in the paper, which can simultaneously determine the optimal size, depth of discharge, and number of cycles of the BES to be installed. The model considers the BES application in both peak shaving and energy arbitrage. The proposed BES optimal sizing problem is formulated using mixed integer programming (MIP) and validated through numerical simulations on a test commercial customer. Sensitivity analyses are further performed to study the impact of BES charging/discharging duration, demand charge value, and local solar generation on the sizing results.