Power Conversion System Operation to Reduce the Electricity Purchasing Cost of Energy Storage Systems
A strategy to operate a power conversion system (PCS) to minimize the electricity rate of an energy storage system (ESS) is formulated. The ESS operation method is determined considering the power management system (PMS). The primary functions include peak-cut, peak-shifting, and frequency regulatio...
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MDPI AG
2021-08-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/14/16/4728 |
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| author | Jun-Mo Kim Jeong Lee Jin-Wook Kim Junsin Yi Chung-Yuen Won |
| author_facet | Jun-Mo Kim Jeong Lee Jin-Wook Kim Junsin Yi Chung-Yuen Won |
| author_sort | Jun-Mo Kim |
| collection | DOAJ |
| description | A strategy to operate a power conversion system (PCS) to minimize the electricity rate of an energy storage system (ESS) is formulated. The ESS operation method is determined considering the power management system (PMS). The primary functions include peak-cut, peak-shifting, and frequency regulation typically related to electricity rates. Thus, the battery is charged and discharged when the price is low and high, respectively, thereby monetizing the battery. However, the ESS incurs a high cost for the batteries and PCS. Therefore, ESSs that reuse electric vehicle (EV) batteries are being actively developed. Many researchers have attempted to maximize the profit of ESSs by developing algorithms to calculate the optimal ESS capacity by performing a power load analysis of electricity consumers. An ESS selected based on this calculation can be operated through the PMS. This ESS can use the battery state of charge (<i>SoC</i>), ranging from 10–90%, to conduct a feasibility analysis using the net present value, which reflects the current electricity rate. This feasibility analysis is performed considering the difference between the initial investment cost of the ESS and the profit obtained from the power generation of the ESS. In South Korea, many policies have been implemented to encourage the installation of ESSs. The ESS promotion policy was implemented until 2020 to reduce the electricity rate, including the contracted capacity of batteries. However, since 2021, this policy has been transformed to reduce the electricity rate based on the daily maximum power generation. Thus, the conventional method of increasing the battery capacity is not suitable, and the profitability should be increased using limited batteries. For ESSs, PCSs composed of single and parallel structures can be used. When installing a large capacity ESS, a PCS using silicon (Si) is adopted to reduce the unit cost of the PCS. The unit price of a silicon carbide (SiC) device has recently decreased significantly. Thus, in this study, a PCS using this SiC device was developed. Moreover, an algorithm was formulated to minimize the electricity rate of the ESS, and the operation of a modular type PCS based on this algorithm was demonstrated. |
| first_indexed | 2024-03-10T08:51:52Z |
| format | Article |
| id | doaj.art-99d0a6a9016940e29b4c001eb5ea2927 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T08:51:52Z |
| publishDate | 2021-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-99d0a6a9016940e29b4c001eb5ea29272023-11-22T07:26:32ZengMDPI AGEnergies1996-10732021-08-011416472810.3390/en14164728Power Conversion System Operation to Reduce the Electricity Purchasing Cost of Energy Storage SystemsJun-Mo Kim0Jeong Lee1Jin-Wook Kim2Junsin Yi3Chung-Yuen Won4Interdisciplinary Program in Photovoltaic System Engineering, Sungkyunkwan University, Suwon 16419, KoreaDepartment of Electrical and Computer Engineering, Sungkyunkwan University, Suwon 16419, KoreaDepartment of Electrical and Computer Engineering, Sungkyunkwan University, Suwon 16419, KoreaDepartment of Electrical and Computer Engineering, Sungkyunkwan University, Suwon 16419, KoreaDepartment of Electrical and Computer Engineering, Sungkyunkwan University, Suwon 16419, KoreaA strategy to operate a power conversion system (PCS) to minimize the electricity rate of an energy storage system (ESS) is formulated. The ESS operation method is determined considering the power management system (PMS). The primary functions include peak-cut, peak-shifting, and frequency regulation typically related to electricity rates. Thus, the battery is charged and discharged when the price is low and high, respectively, thereby monetizing the battery. However, the ESS incurs a high cost for the batteries and PCS. Therefore, ESSs that reuse electric vehicle (EV) batteries are being actively developed. Many researchers have attempted to maximize the profit of ESSs by developing algorithms to calculate the optimal ESS capacity by performing a power load analysis of electricity consumers. An ESS selected based on this calculation can be operated through the PMS. This ESS can use the battery state of charge (<i>SoC</i>), ranging from 10–90%, to conduct a feasibility analysis using the net present value, which reflects the current electricity rate. This feasibility analysis is performed considering the difference between the initial investment cost of the ESS and the profit obtained from the power generation of the ESS. In South Korea, many policies have been implemented to encourage the installation of ESSs. The ESS promotion policy was implemented until 2020 to reduce the electricity rate, including the contracted capacity of batteries. However, since 2021, this policy has been transformed to reduce the electricity rate based on the daily maximum power generation. Thus, the conventional method of increasing the battery capacity is not suitable, and the profitability should be increased using limited batteries. For ESSs, PCSs composed of single and parallel structures can be used. When installing a large capacity ESS, a PCS using silicon (Si) is adopted to reduce the unit cost of the PCS. The unit price of a silicon carbide (SiC) device has recently decreased significantly. Thus, in this study, a PCS using this SiC device was developed. Moreover, an algorithm was formulated to minimize the electricity rate of the ESS, and the operation of a modular type PCS based on this algorithm was demonstrated.https://www.mdpi.com/1996-1073/14/16/4728power conversion systemenergy storage systempower management systemnet present value |
| spellingShingle | Jun-Mo Kim Jeong Lee Jin-Wook Kim Junsin Yi Chung-Yuen Won Power Conversion System Operation to Reduce the Electricity Purchasing Cost of Energy Storage Systems Energies power conversion system energy storage system power management system net present value |
| title | Power Conversion System Operation to Reduce the Electricity Purchasing Cost of Energy Storage Systems |
| title_full | Power Conversion System Operation to Reduce the Electricity Purchasing Cost of Energy Storage Systems |
| title_fullStr | Power Conversion System Operation to Reduce the Electricity Purchasing Cost of Energy Storage Systems |
| title_full_unstemmed | Power Conversion System Operation to Reduce the Electricity Purchasing Cost of Energy Storage Systems |
| title_short | Power Conversion System Operation to Reduce the Electricity Purchasing Cost of Energy Storage Systems |
| title_sort | power conversion system operation to reduce the electricity purchasing cost of energy storage systems |
| topic | power conversion system energy storage system power management system net present value |
| url | https://www.mdpi.com/1996-1073/14/16/4728 |
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