Abstract
Stakeholders’ interests on renewable and clean energy sources experienced a huge increase in the last decades, thanks to the remarkable benefits on climate, economic, and social issues. The integration of flexible energy storage systems represents a great chance for a further increased penetration as they support the mitigation of renewables’ main drawbacks (i.e., stochastic behavior) and guarantee the balance between energy supply and demand enabling non-simultaneous production and consumption. The increased focus on distributed generation and storage was also of interest to the research community which investigated both the economic and technical performances of the integrated systems. The operations management branch addressed this topic, since storage devices present many similarities with traditional inventory management applied to regular commodities. At a user level, the relation between energy production and storage can be studied by analogy with inventory models. Specifically, this study presents a multi-period newsvendor model for the management and optimal sizing of a battery energy storage system installed to increase the self-consumption rate by allowing loads shifting. This work aims to extend the traditional inventory management applying its concepts to energy systems operations in order to minimize the total energy cost. A numerical study is provided to show the behavior of the model.
Highlights
Last decades experienced a fast increase in the penetration of renewable and clean energy resources around the world
Electrical energy storage systems are experiencing a fast development thanks to the great benefits that they introduce, e.g., they can stabilize the energy production of renewable energy sources, increase self-consumption and allow time shifting supporting the development of distributed generation
This study aims to extend traditional inventory theory applying a multi-period newsvendor model to the energy storage systems (ESSs) in order to exploit the similarities of the two process for determining its optimal management
Summary
Last decades experienced a fast increase in the penetration of renewable and clean energy resources around the world. In the micro-perspective, i.e., considering the decentralized decisions related to energy generation and demand at the user level, the daily operating policies of the storage devices can be managed by applying the inventory theory models, such as the economic order quantity (EOQ) and the newsvendor problem. In the latter, a decision-maker facing random demand for a perishable product decides how much of it to stock for a single selling period in order to minimize the expected costs.
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