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Publication . Conference object . Preprint . Article . 2020

Sizing and Profitability of Energy Storage for Prosumers in Madeira, Portugal

Umar Hashmi; Jonathan Cavaleiro; Lucas Pereira; Ana Bušić;
Open Access
English
Abstract

International audience; This paper proposes a framework to select the best-suited battery for co-optimizing for peak demand shaving, energy arbitrage and increase self-sufficiency in the context of power network in Madeira, Portugal. Feed-in-tariff for electricity network in Madeira is zero, which implies consumers with excess production should locally consume the excess generation rather than wasting it. Further, the power network operator applies a peak power contract for consumers which imposes an upper bound on the peak power seen by the power grid interfaced by energy meter. We investigate the value of storage in Madeira, using four different types of prosumers, categorized based on the relationship between their inelastic load and renewable generation. We observe that the marginal increase in the value of storage deteriorates with increase in size and ramping capabilities. We propose the use of profit per cycle per unit of battery capacity and expected payback period as indices for selecting the best-suited storage parameters to ensure profitability. This mechanism takes into account the consumption and generation patterns, profit, storage degradation, and cycle and calendar life of the battery. We also propose the inclusion of a friction coefficient in the original co-optimization formulation to increase the value of storage by reducing the operational cycles and eliminate low returning transactions.

Subjects by Vocabulary

Microsoft Academic Graph classification: Payback period Electricity business.industry business Electricity meter Profitability index Profit (economics) Peak demand Automotive engineering Sizing Energy storage Computer science

Subjects

Electrical Engineering and Systems Science - Systems and Control, [MATH.MATH-OC]Mathematics [math]/Optimization and Control [math.OC], [SPI.NRJ]Engineering Sciences [physics]/Electric power, [INFO.INFO-SY]Computer Science [cs]/Systems and Control [cs.SY], Systems and Control (eess.SY), FOS: Electrical engineering, electronic engineering, information engineering

27 references, page 1 of 3

[1] M. U. Hashmi, D. Muthirayan, and A. Bušic´, “Effect of real-time electricity pricing on ancillary service requirements,” in 9th e-Energy. ACM, 2018, pp. 550-555.

[2] Y. Shi, B. Xu, D. Wang, and B. Zhang, “Using battery storage for peak shaving and frequency regulation: Joint optimization for superlinear gains,” IEEE Transactions on Power Systems, vol. 33, no. 3, pp. 2882- 2894, 2018.

[3] M. U. Hashmi, L. Pereira, and A. Bušic´, “Energy storage in madeira, portugal: Co-optimizing for arbitrage, self-sufficiency, peak shaving and energy backup,” arXiv preprint arXiv:1904.00463, 2019.

[4] D. Kiedanski, M. U. Hashmi, A. Busic, and D. Kofman, “Sensitivity to forecast errors in energy storage arbitrage for residential consumers,” in SmartGridComm, Beijing, P.R. China, Oct. 2019. [OpenAIRE]

[5] M. U. Hashmi, A. Mukhopadhyay, A. Bušic´, and J. Elias, “Optimal control of storage under time varying electricity prices,” in SmartGridComm. IEEE, 2017, pp. 134-140.

[6] M. U. Hashmi, A. Mukhopadhyay, A. Busic, J. Elias, and D. Kiedanski, “Optimal storage arbitrage under net metering using linear programming,” in SmartGridComm, Beijing, P.R. China, Oct. 2019.

[7] A. Oudalov, R. Cherkaoui, and A. Beguin, “Sizing and optimal operation of battery energy storage system for peak shaving application,” in Power Tech, 2007 IEEE Lausanne. IEEE, 2007, pp. 621-625. [OpenAIRE]

[8] J. Shen, S. Dusmez, and A. Khaligh, “Optimization of sizing and battery cycle life in battery/ultracapacitor hybrid energy storage systems for electric vehicle applications,” IEEE Trans. on industrial informatics, vol. 10, no. 4, pp. 2112-2121, 2014. [OpenAIRE]

[9] S. Bahramirad, W. Reder, and A. Khodaei, “Reliability-constrained optimal sizing of energy storage system in a microgrid,” IEEE Trans. on Smart Grid, vol. 3, no. 4, pp. 2056-2062, 2012. [OpenAIRE]

[10] S. Chen, H. B. Gooi, and M. Wang, “Sizing of energy storage for microgrids,” IEEE Trans. on Smart Grid, vol. 3, no. 1, pp. 142-151, 2011.

Funded by
EC| SMILE
Project
SMILE
SMart IsLand Energy systems
  • Funder: European Commission (EC)
  • Project Code: 731249
  • Funding stream: H2020 | IA
Validated by funder
,
FCT| UID/EEA/50009/2019
Project
UID/EEA/50009/2019
Laboratory for Robotics and Engineering Systems
  • Funder: Fundação para a Ciência e a Tecnologia, I.P. (FCT)
  • Project Code: UID/EEA/50009/2019
  • Funding stream: 6817 - DCRRNI ID
,
EC| SMILE
Project
SMILE
SMart IsLand Energy systems
  • Funder: European Commission (EC)
  • Project Code: 731249
  • Funding stream: H2020 | IA
Validated by funder
,
FCT| UID/EEA/50009/2019
Project
UID/EEA/50009/2019
Laboratory for Robotics and Engineering Systems
  • Funder: Fundação para a Ciência e a Tecnologia, I.P. (FCT)
  • Project Code: UID/EEA/50009/2019
  • Funding stream: 6817 - DCRRNI ID
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