Cycle-Life-Aware Optimal Sizing of Grid-Side Battery Energy Storage

Abstract

Grid-side electrochemical battery energy storage systems (BESS) have been increasingly deployed as a fast and flexible solution to promoting renewable energy resources penetration. However, high investment cost and revenue risk greatly restrict its grid-scale applications. As one of the key factors that affect investment cost, the cycle life of battery heavily depends on its charging/discharging actions during the operation, particularly in the presence of uncertain renewable generation. In this context, it is necessary to consider the operation-dependent cycle life of batteries in optimal BESS sizing, which imposes great challenges to the modeling and solving of the planning problems. In this paper, we propose a novel two-level optimal sizing model for grid-scale BESS, considering its operation under uncertainties induced by volatile wind generation. In the lower level, a long-term chronological operation simulation of BESS is processed with an accurate cycle life model of batteries; in the upper level, marginal economic utility analysis and BESS size reforming are conducted to approach the optimal size of BESS. An iterative algorithm is designed to solve the model effectively. The proposed method is verified on a modified IEEE RTS-24 system and a real provincial power grid of China.