Determining the Power and Capacity of Electricity Storage in Cooperation with the Microgrid for the Implementation of the Price Arbitration Strategy of Industrial Enterprises Installation

Abstract

The growing worldwide costs of energy produced as a result of conventional fuel combustion, the limited capacity of the distribution grid, and the growing number of unstable installations based on renewable energy sources increase the need to implement systems of stabilization and regulate loads for end users. The battery energy storage system (BESS) that operates in the internal microgrid of an enterprise enables the management of the accumulated energy in any time zone of the day. Using a price arbitrage strategy with an electricity storage facility, we can reduce the cost of high electricity prices during peak demand periods. This study aims to determine the most effective method of setting up the capacity and electrical power of an energy storage system operating in a microgrid, in an enterprise to implement a price arbitration strategy. Such a method should include consideration of the characteristics of the demand profile of consumer systems, the charges related to electricity, and electricity storage costs. The proposed deterministic method is based on the use of a defined parameter, “marginal income elasticity”. In this study, the size of energy storage refers to the power and electric capacity of BESS that are used for the implementation of the price arbitrage strategy.

Keywords

• BESS management
• price arbitration
• shift load
• microgrid
• energy efficiency