Abstract

The energy storage system (ESS) is the next major disruption to the current architecture of the electricity grid. Energy storage offers several benefits to the electricity grid, which include frequency regulation, energy arbitrage, peak shaving, reducing intermittency of renewable energy sources (RESs), and many other benefits that are not possible without large energy storage. Large-scale batteries are still expensive and cannot be readily used with a reasonable return on investment. Aggregating a large number of consumers’ small scale batteries may provide us with the benefits of large central storage. However, aggregated small-scale batteries have several advantages over large central storage. Small-scale batteries provide better scalability and open up many new investment opportunities for the grid as well as for the consumers. In this article, we present a control scheme for small-scale distributed batteries, namely, Weighted Batteries Scheduling (WBS) scheme to make a large distributed energy storage. We also present a method to calculate weights, that are required for the WBS scheme, by prioritizing the batteries with respect to the state-of-charge (SOC). We evaluate the fairness of the proposed scheme using Jain’s fairness index and entropy-based fairness index. The proposed storage model can be used for any necessary support for the electricity grid. We study financial benefits obtained by the large distributed energy storage for frequency regulation, energy arbitrage and peak shaving. Frequency regulation appears to be of the highest value for energy storage. Our results show that a distributed storage consisting of 1000 small batteries each of 1 kW power achieves average daily revenue of $606.61.

Highlights

  • energy storage system (ESS) is gaining rapid growth due to the electricity shortfalls caused by several factors including increased electricity demand, uncertain electricity generation from renewable energy sources (RESs), and weather conditions [1, 2]

  • FERC Order 755 [35] implemented by the Federal Energy Regulatory Commission (FERC) specifies rules for the payment of ESS participating in the ancillary services

  • FAIRNESS IN BATTERIES SCHEDULING In section II, we have proposed the Weighted Batteries Scheduling (WBS) scheme and the method to calculate priority-based weights for scheduling the batteries in the distributed storage

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Summary

INTRODUCTION

ESS is gaining rapid growth due to the electricity shortfalls caused by several factors including increased electricity demand, uncertain electricity generation from RESs, and weather conditions [1, 2]. We propose a centrally controlled model of a large distributed energy storage consisting of many small batteries for the future smart grid. The proposed distributed storage model offers the same benefits to the electricity grid as large centralized storage does such as ancillary services, peak demand reduction, and less need for fossil fuel-based backup generators during contingencies. 6) The distributed storage schemes are useful for countries like Pakistan where consumers have already installed battery-based UPSs. After the energy crisis is over, these several batteries can be used for various applications to the electricity grid. The rest of the paper is organized as follows: In section II, we describe the proposed large energy storage model using the WBS centralized control scheme and a method to compute weights by prioritizing the ESSs. In section III, we describe three application areas of the proposed distributed storage.

ENERGY STORAGE MODEL
PRIORITY-BASED WEIGHTS CALCULATION
APPLICATIONS OF DISTRIBUTED ENERGY STORAGE
FREQUENCY REGULATION
ENERGY ARBITRAGE
PEAK SHAVING
SIMULATION SETUP
DISCUSSION AND CONCLUSIONS
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