Abstract
A new operation method for an energy storage system (ESS) was proposed to reduce the electricity charges of a customer paying the wholesale price and participating in the industrial conservation initiative (ICI) in the Ontario electricity market of Canada. Electricity charges were overviewed and classified into four components: fixed cost, electricity usage cost, peak demand cost, and Ontario peak contribution cost (OPCC). Additionally, the online market data provided by the independent electricity system operator (IESO), which operates the Ontario electricity market, were reviewed. From the reviews, it was identified that (1) the portion of the OPCC in the electricity charges increased continuously, and (2) large errors can sometimes exist in the forecasted data given by the IESO. In order to reflect these, a new schedule-based operation method for the ESS was proposed in this paper. In the proposed method, the operation schedule for the ESS is determined by solving an optimization problem to minimize the electricity charges, where the OPCC is considered and the online market data provided by the IESO is used. The active power reference for the ESS is then calculated from the scheduled output for the current time interval. To reflect the most recent market data, the operation schedule and the active power reference for the ESS are iteratively determined for every five minutes. In addition, in order to cope with the prediction errors, methods to correct the forecasted data for the current time interval and secure the energy reserve are presented. The results obtained from the case study and actual operation at the Penetanguishene microgrid test bed in Ontario are presented to validate the proposed method.
Highlights
To test the proposed method, it was assumed that the circuit breaker (CB) was the point of common connection for a virtual customer participating in the industrial conservation initiative (ICI) and adopting the spot market (SM) rates
Based on the overview of the electricity charges for the target customer, it was identified that the electricity charges could be classified into five types: fixed cost (FC), monthly EUC (MEUC), hourly EUC (HEUC), peak demand cost (PDC), and Ontario peak contribution cost (OPCC)
The OPCC was the largest portion of the electricity charges, this has not been well reflected in previous studies
Summary
Energy storage systems (ESSs) have emerged as a remarkable resource for power system operations due to their various advantages. By using an ESS, electrical energy can be stored and subsequently discharged quickly within its capacity limits. ESSs can be utilized for frequency regulation [1], renewable energy integration [2], power quality enhancement [3], and electricity cost reduction [4,5,6,7,8,9,10,11,12,13,14,15,16,17,18,19,20,21,22]. One of the main objectives of the ESS operation is to maximize benefits from their application
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