Abstract
Various incentive schemes are being implemented to improve the economic return of distributed energy resources (DERs). Accordingly, research on the optimal capacity design and operations of photovoltaic (PV) power generation and energy storage systems (ESSs) is important to ensure the economic efficiency of DERs. This study presents the models of optimal capacity and facility operation methods based on long-term operational changes of DERs in a building with self-consumption. Key policy variables are derived for a renewable energy system. We first analyzed the operating environments of the DERs according to the basic types of PVs and ESSs, and by examining the detailed benefit structure of a special rate for renewable energy. The optimal capacity of PVs and ESSs with the lowest net cost was estimated using various parameters in consideration of long-term operations (~15 years), and by setting rules for a special rate for renewable energy. It was confirmed that the combined use of peak and rate reductions constituted the most economical operational approach. A case study confirmed the economic sensitivity of cost and benefit analyses based on actual load data. Correspondingly, it is inferred that this study will identify core policy variables that can aid decision-making in the long-term perspective.
Highlights
There is a growing interest in mitigating greenhouse gas emissions worldwide to prevent climatic changes due to global warming
It is important to choose adequate the types of solar power transactions since these types could determine the revenue of PV. These types can be largely divided into price offset transactions, links to new and renewable power projects, and installation of self-consumption power generation facilities that directly consume the power generated by the PV system owner
We analyzed the long-term policy benefits and technological changes of photovoltaic system and energy storage system from the optimization model based on building customer
Summary
There is a growing interest in mitigating greenhouse gas emissions worldwide to prevent climatic changes due to global warming. The above-mentioned studies proposed the methods for optimizing ESSs in order to minimize the operation cost and CO2 -emission of the power system. In contrast with minimizing the cost and the emission, the methods for maximizing the revenue with utilizing the ESSs connected with a distributed energy resource (DER) were proposed [13,14,15]. This study estimates the optimal capacities of PV and ESSs to minimize the net cost by considering settlement rules and an incentive plan according to the actual DER policy of Korea.
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