The effect of SoC management on economic performance for battery energy storage system in providing voltage regulation in distribution networks

Abstract

Nowadays, distribution networks experience voltage deviation and violation issues owing to the increased penetration of photovoltaic (PV) generation. The battery energy storage system (BESS) deployment is a promising solution in providing voltage regulation. However, the economic performance of BESS for voltage regulation provision cannot be ensured when state of charge (SoC) management is considered. Therefore, this study assessed the effect of SoC management on economic performance for a BESS in providing voltage regulation in a distribution network. Five different SoC management scenarios proposed in the literature were implemented with a droop-based voltage regulation strategy. A techno-economic model was developed to determine the advantages and disadvantages of those SoC management scenarios based on cost-attractiveness and profitability. In addition, a sensitivity analysis was conducted to examine the extent to which the net present value (NPV) was affected by changes in SoC restoration thresholds. The results show that the NPV increased substantially when the SoC management scenarios (except the dead-band SoC restoration) were considered. Nevertheless, the levelized cost of energy (LCOE) did not display the economic feasibility of the BESS projects because the remuneration of capacity performance was omitted. Moreover, a significant increase in NPV was indicated for wider SoC restoration thresholds.