Abstract
Demand response (DR) can be very useful for an industrial facility, since it allows noticeable reductions in the electricity bill due to the significant value of energy demand. Although most industrial processes have stringent constraints in terms of hourly active power, DR only becomes attractive when performed with the contemporaneous use of battery energy storage systems (BESSs). When this option is used, an optimal sizing of BESSs is desirable, because the investment costs can be significant. This paper deals with the optimal sizing of a BESS installed in an industrial facility to reduce electricity costs. A four-step procedure, based on Decision Theory, was used to obtain a good solution for the sizing problem, even when facing uncertainties; in fact, we think that the sizing procedure must properly take into account the unavoidable uncertainties introduced by the cost of electricity and the load demands of industrial facilities. Three approaches provided by Decision Theory were applied, and they were based on: (1) the minimization of expected cost; (2) the regret felt by the sizing engineer; and (3) a mix of (1) and (2). The numerical applications performed on an actual industrial facility provided evidence of the effectiveness of the proposed procedure.
Highlights
It is well known that battery energy storage systems (BESSs), due to the number and variety of services they can provide, are powerful tools for the solution of some challenges that future micro grids will face [1,2,3,4]
This paper addressed the problem of determining the optimal size of a battery storage system to be installed in an industrial facility to reduce the facility’s electricity bill
The main original contribution of the paper is that the sizing was conducted by using a probabilistic approach that took into account the unavoidable uncertainties involved with the electricity bill cost coefficients and the profile of the industrial facility’s load demand
Summary
It is well known that battery energy storage systems (BESSs), due to the number and variety of services they can provide, are powerful tools for the solution of some challenges that future micro grids will face [1,2,3,4]. We contend that the problem of sizing storage systems to be installed to reduce the electricity bills of an industrial facility must be solved with uncertain data related to the problem. Sizing a BESS for an industrial facility is characterized by unavoidable uncertainties related to energy costs and loads, to the best knowledge of the authors, no papers have been published in the relevant literature dealing with the probabilistic sizing of battery storage systems to reduce facilities’ electricity bills. The problem of sizing a BESS for reducing the end-user’s electricity bill was solved by using a probabilistic approach based on a stepwise procedure, i.e., (1) a limited number of selected sizing alternatives for the BESS and of futures (i.e., possible values of uncertain input data) were chosen;.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
