Abstract
In this paper, a model for allocating and calculating the optimal size of an energy storage system (ESS) in a microgrid will be proposed. A larger ESS requires higher investment costs while reduces the microgrid operating cost. The optimal ESS sizing and allocating problem will be proposed which minimizes the total cost that includes investment cost of the ESS, as well as expected microgrid operating cost. Utilizing the ESS, generation shortage due to outage of conventional units and intermittency of renewable units is handled. A practical model for ESS is utilized. Mixed-integer linear programming (MILP) will be utilized to solve the DC optimal power flow problem.
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