Techno-economic approach to optimization of large-scale battery energy storage applications at transmission level, A

Abstract

Battery Energy storage system (BESS) is one of the most promising ideas to achieve this concept of shifting and smooth renewable generation to match the load demand profile. Besides load shifting, BESS can also provide a variety of applications from generation and transmission systems to distribution and end-user side, such as energy arbitrage, frequency regulation, grid stabilization, T&D deferral, etc. Out of all the ancillary services and applications, one of the most discussed revenue resources for BESS is energy arbitrage. Due to the continuous declining per unit BESS cost, the economic viability of using BESS for energy arbitrage application is receiving increasing attention. This dissertation aims at developing an integrated BESS analysis framework to study the engineering and economic viability of BESS applications in an electric power network. The framework is utilized to understand and facilitate the decision making of BESSs related projects: (1) Find the most optimal geographical location in a given geographically dispersed power network. (2) Find the most optimal charging and discharging scheme during operation. (3) Find the most optimal BESS size and (4) Evaluate the economics (cash flow and Net Present Value) of BESS related projects.The dissertation effectively analyzes the engineering and economics viabilities of a given BESS project in a Transmission system following the algorithm presented. The research finds utility in: (1) benchmarking the impacts of BESSs in a transmission network, (2) designing more accurate control and operation schemes for BESS projects, (3) effectively forecast the revenue stream of BESS projects throughout their lifespan, and (4) exploring the utility of BESSs in providing stability and reliability support. The outcome of this dissertation helps develop frameworks to maximize the utility of BESSs to the grid as well as to provide a clearer picture to the investors and transmission operators in the hope of making BESS projects more competitive in the emerging power market.