Integration of renewable energy resources (RERs) and complexities associated with varying load patterns urge the demand for energy storage systems (ESS) to ensure real power balancing of distribution system. Among various ESS, battery energy storage system (BESS) guarantees the reliable operation of microgrids in terms of economic and technical functionalities. The scheduling of microgrids becomes essential for the economic and optimal performance of both generating sources and loads. In this work, the load-shifting capability of BESS is utilized for the optimal scheduling of grid-connected microgrids. BESS has a significant role in the effective utilization of power from RERs during grid balancing. This paper discusses the scheduling of grid-connected microgrid with two scheduling strategies, which differ in the charging behaviour of BESS. Scheduling decisions are based on the value of locational marginal price (LMP) of distribution system. In scheduling strategy-I, BESS charges at off-peak hours, either from the PV system or from the grid. Meanwhile, in scheduling strategy- II, BESS charges from the PV system at peak or off-peak hours. These two scheduling methods are also compared with the scheduling of the distribution system without integrating the microgrid. The cost of power generation, power from the main grid, and active power losses of the distribution system are calculated by performing optimal power flow (OPF). The effectiveness of the proposed scheduling strategies are validated on the IEEE-69 bus system for 24 h time duration by using MATPOWER simulation tool. The results obtained after OPF establishes the requirement of effective utilization of BESS in PV integrated distribution system.
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