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Economic Capacity Planning of BESS for Electricity Customers Charged Based on Both Energy and Peak Demand

Yong Hwa Lee(1), Young Gyu Jin(2*), Yong Tae Yoon(3)

(1) Smart Metering Team, Korea Electric Power Corporation, Naju, Korea, Republic of
(2) Department of Electrical Engineering, Jeju National University, Jeju, Korea, Republic of
(3) Department of Electrical and Computer Engineering, Seoul National University, Seoul, Korea, Republic of
(*) Corresponding author


DOI: https://doi.org/10.15866/iree.v13i5.15714

Abstract


Electricity customers can achieve economic benefits from cost reduction and/or revenue increase using battery energy storage system (BESS). However, different conditions of each customer require different methods to determine the suitable size of BESS. Additionally, different operation strategies of BESS result in the different cost/benefit analysis. Thus, in this study, authors have identified and focused on the electricity customers with TOU rate, varying operation mode with the seasons, and charging scheme based on both energy consumption and the peak demand. The procedures to find the optimal power and energy capacities for the selected customer are formulated. The optimal operation strategy with priority, that is, peak shaving–DR–scheduling modes in summer/winter and DR–scheduling mode–peak shaving modes in spring/autumn, is also proposed. The proposed method is applied to a specific type of customer in Korea in the case study. The results showed that an optimal capacity can be found and the proposed operation strategy with priority is optimal. Moreover, it has been found out that, for this type of customer, the large energy capacity of BESS mostly leads to large economic benefit; in contrast, the small power capacity mostly leads to small economic benefit.
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Keywords


Economic Analysis; Capacity Planning; BESS; Demand Charge; TOU Rate

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