Abstract
Distributed energy storage (DES) on the user side has two commercial modes including peak load shaving and demand management as main profit modes to gain profits, and the capital recovery generally takes 8–9 years. In order to further improve the return rate on the investment of distributed energy storage, this paper proposes an optimized economic operation strategy of distributed energy storage with multi-profit mode operation. Considering three profit modes of distributed energy storage including demand management, peak-valley spread arbitrage and participating in demand response, a multi-profit model of distributed energy storage is established, and the proposed optimal operation strategy formulates three stages of the energy storage operation, namely month-ahead, day-ahead, and in-day. In the month-ahead optimization stage, the demand charge threshold of the next month is optimized to minimize the electricity cost. In the day-ahead optimization stage, under the constraint of demand charge threshold and with the goal of maximizing returns, the distributed energy storage is controlled to participate in peak-valley spread arbitrage and demand response, and the optimized output curve for the next day is calculated. In the in-day optimization stage, based on the optimized output curve, taking real-time demand response into account, the real-time charge-discharge power of energy storage is adjusted dynamically with the goal of minimizing income loss, thus to realize adaptive adjustment of distributed energy storage and eliminate the risk of income loss. Simulation results of distributed energy storage for typical industrial large users show that the proposed strategy can effectively improve the economic benefits of energy storage.
Highlights
Due to the characteristics of decentralized layout and flexible charge-discharge, distributed energy storage (DES) can effectively smooth the grid load curve, promote distributed energy consumption, improve power quality and so on, which plays an increasingly prominent role in the construction of smart power grid [1], [2].The associate editor coordinating the review of this manuscript and approving it for publication was Bin Zhou .Until now, DES on the user side has already had several commercial modes including peak-valley spread arbitrage and demand management as main profit modes to gain profits [3]
This paper proposes a distributed energy storage optimization operation strategy considering demand management, peak-valley spread arbitrage and participating in demand response to improve the return on investment of distributed energy storage
(3) This paper proves that distributed energy storage can obtain economic benefits in multi-profit mode, and the proposed strategy can be applied to any kind of energy storage
Summary
Due to the characteristics of decentralized layout and flexible charge-discharge, distributed energy storage (DES) can effectively smooth the grid load curve, promote distributed energy consumption, improve power quality and so on, which plays an increasingly prominent role in the construction of smart power grid [1], [2]. Considering the influence of charge-discharge cycles times per day on the distributed energy storage life, [13] establishes an optimal operation model of distributed energy storage, with the goal of maximum the income of participating in demand management and peak-valley spread arbitrage. No research has been done to establish an optimized operation strategy on the multi-mode operation of distributed energy storage with multiple profit modes: demand management, peak load shaving and participating in demand response. This paper proposes a distributed energy storage optimization operation strategy considering demand management, peak-valley spread arbitrage and participating in demand response to improve the return on investment of distributed energy storage. (1) A multi-profit model of the distributed energy storage is built based on the analysis towards three profit modes, i.e., the demand management, peak load shaving and participating in demand response, considering the impact of operation plans on the distributed energy storage. MULTI-MODE OPERATION BASED ECONOMIC BENEFIT MODEL OF DES Taking into consideration of three profit modes including demand management, peak-valley spread arbitrage and participating in demand response, the multi-mode operation based economic benefit model of DES is established below
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