Generation of Alternative Battery Allocation Proposals in Distribution Systems by the Optimization of Different Economic Metrics within a Mathematical Model
Battery systems bring technical and economic advantages to electrical distribution systems (EDSs), as they conveniently store the surplus of cheap renewable generation for use at a more convenient time and contribute to peak shaving. Due to the high cost of batteries, technical and economic studies...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2021-03-01
|
| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/14/6/1726 |
| _version_ | 1797540622298513408 |
|---|---|
| author | Norberto Martinez Alejandra Tabares John F. Franco |
| author_facet | Norberto Martinez Alejandra Tabares John F. Franco |
| author_sort | Norberto Martinez |
| collection | DOAJ |
| description | Battery systems bring technical and economic advantages to electrical distribution systems (EDSs), as they conveniently store the surplus of cheap renewable generation for use at a more convenient time and contribute to peak shaving. Due to the high cost of batteries, technical and economic studies are needed to evaluate their correct allocation within the EDS. To contribute to this analysis, this paper proposes a stochastic mathematical model for the optimal battery allocation (OBA), which can be guided by the optimization of two different economic metrics: net present value (NPV) and internal rate of return (IRR). The effects of the OBA in the EDS are evaluated considering the stochastic variation of photovoltaic generation and load. Tests with the 33-node IEEE test system indicate that OBA results in voltage profile improvement (~1% at peak time), peak reduction (31.17%), increased photovoltaic hosting capacity (18.8%), and cost reduction (3.06%). Furthermore, it was found that the IRR metric leads to a different solution compared to the traditional NPV optimization due to its inherent consideration of the relation between cash flow and investment. Thus, both NPV and IRR-based allocation alternatives can be used by the decision maker to improve economic and technical operation of the EDS. |
| first_indexed | 2024-03-10T13:03:49Z |
| format | Article |
| id | doaj.art-5d7318e0bea7432bb58f90397fd7fa00 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T13:03:49Z |
| publishDate | 2021-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-5d7318e0bea7432bb58f90397fd7fa002023-11-21T11:16:17ZengMDPI AGEnergies1996-10732021-03-01146172610.3390/en14061726Generation of Alternative Battery Allocation Proposals in Distribution Systems by the Optimization of Different Economic Metrics within a Mathematical ModelNorberto Martinez0Alejandra Tabares1John F. Franco2Department of Electrical Engineering, São Paulo State University (UNESP), Ilha Solteira, São Paulo 15385-000, BrazilDepartment of Electrical Engineering, São Paulo State University (UNESP), Ilha Solteira, São Paulo 15385-000, BrazilSchool of Energy Engineering, São Paulo State University (UNESP), Rosana, São Paulo 19274-000, BrazilBattery systems bring technical and economic advantages to electrical distribution systems (EDSs), as they conveniently store the surplus of cheap renewable generation for use at a more convenient time and contribute to peak shaving. Due to the high cost of batteries, technical and economic studies are needed to evaluate their correct allocation within the EDS. To contribute to this analysis, this paper proposes a stochastic mathematical model for the optimal battery allocation (OBA), which can be guided by the optimization of two different economic metrics: net present value (NPV) and internal rate of return (IRR). The effects of the OBA in the EDS are evaluated considering the stochastic variation of photovoltaic generation and load. Tests with the 33-node IEEE test system indicate that OBA results in voltage profile improvement (~1% at peak time), peak reduction (31.17%), increased photovoltaic hosting capacity (18.8%), and cost reduction (3.06%). Furthermore, it was found that the IRR metric leads to a different solution compared to the traditional NPV optimization due to its inherent consideration of the relation between cash flow and investment. Thus, both NPV and IRR-based allocation alternatives can be used by the decision maker to improve economic and technical operation of the EDS.https://www.mdpi.com/1996-1073/14/6/1726battery allocationbattery operationdistribution systemseconomic and technical analysis |
| spellingShingle | Norberto Martinez Alejandra Tabares John F. Franco Generation of Alternative Battery Allocation Proposals in Distribution Systems by the Optimization of Different Economic Metrics within a Mathematical Model Energies battery allocation battery operation distribution systems economic and technical analysis |
| title | Generation of Alternative Battery Allocation Proposals in Distribution Systems by the Optimization of Different Economic Metrics within a Mathematical Model |
| title_full | Generation of Alternative Battery Allocation Proposals in Distribution Systems by the Optimization of Different Economic Metrics within a Mathematical Model |
| title_fullStr | Generation of Alternative Battery Allocation Proposals in Distribution Systems by the Optimization of Different Economic Metrics within a Mathematical Model |
| title_full_unstemmed | Generation of Alternative Battery Allocation Proposals in Distribution Systems by the Optimization of Different Economic Metrics within a Mathematical Model |
| title_short | Generation of Alternative Battery Allocation Proposals in Distribution Systems by the Optimization of Different Economic Metrics within a Mathematical Model |
| title_sort | generation of alternative battery allocation proposals in distribution systems by the optimization of different economic metrics within a mathematical model |
| topic | battery allocation battery operation distribution systems economic and technical analysis |
| url | https://www.mdpi.com/1996-1073/14/6/1726 |
| work_keys_str_mv | AT norbertomartinez generationofalternativebatteryallocationproposalsindistributionsystemsbytheoptimizationofdifferenteconomicmetricswithinamathematicalmodel AT alejandratabares generationofalternativebatteryallocationproposalsindistributionsystemsbytheoptimizationofdifferenteconomicmetricswithinamathematicalmodel AT johnffranco generationofalternativebatteryallocationproposalsindistributionsystemsbytheoptimizationofdifferenteconomicmetricswithinamathematicalmodel |