Frequency-Based Time-of-Use Pricing with Multiple Battery-buffered Smart Loads

Abstract

This work discusses a new time-of-use energy pricing structure based on grid frequency. Under the proposed pricing structure, energy cost depends on the time of frequency deviation and the period during which energy is used. This pricing mechanism is intended for use with multiple behind-the-meter home batteries as part of a frequency-controlled smart load strategy known as a battery buffered smart load. The load energy consumption from the grid and energy storage rates thus depend on the frequency deviation and hours of use, which means that the proposed pricing encourages battery-using customers to not only utilise energy arbitrage, shifting peak demand but also to contribute to demand-side primary frequency control. The second contribution of this paper is the presentation of an operation strategy for multiple buffered battery smart load units in which charge and discharge decisions are made according to off- and on-peak period information to ensure continuous provision of primary frequency control under the proposed time of frequency division pricing. A MATLAB simulation of the proposed pricing and operation modes of the BBSL was conducted with multiple battery-buffered smart load to assess feasibility.