Indonesia is a tropical climate country with considerable renewable electrical energy source prospects, including photovoltaic (PV) and wind energies. Nevertheless, several variable renewable energy sources (VREs) have exhibited uncertain attributes and substantial reliance on natural conditions, leading to unstable load-related power supply risks. Hence, integrating battery energy storage systems (BESSs) with VRE generators is a dependable approach to bolster renewable energy generator applications on a large-scale grid while providing load demand flexibility. This study determined adequate sizing and placement of the BESS to achieve maximum VRE generator penetration while considering the demand response flexibility. Key indicators, including technical minimum load and system ramp capacity, were identified to achieve maximum penetration of thermal generators. This study also combined a unit commitment procedure with direct current optimal power flow (DC-OPF) as a novel approach to determine the maximum VRE penetration level. An optimization problem model concerning mixed integer linear programming (MILP) was subsequently employed in this study using the CPLEX solver in the general algebraic modeling system (GAMS). The study is based on the IEEE RTS-24 system modified and a real-life case study of the Lombok energy system in Indonesia. Results from the simulated Lombok power system highlighted that optimal sizing and placement of the BESS could lower system costs by 37.66%, 33.63%, and 22.26% compared to the current system conditions during the weekday, weekend, and the lowest day scenarios, respectively. The VRE penetrations of the generators were also higher than the current system conditions by 83%, 51%, and 39% during the weekday, weekend, and the lowest day scenarios, respectively.
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