Deployment of battery energy storage system for energy arbitrage applications

Modern electric power system is gradually evolving and is expected to be more reliable and efficient with two-way flow of information and electricity between demand and supply. Energy storage system (ESS) is one of the most promising ideas to achieve this concept. It can provide a variety of applications from generation and transmission system to distribution and end-user side. This paper focuses on solving an independent optimization problem, maximizing energy arbitrage revenue. An investor company installs a BESS of specific ratings (defined by the MW and maximum hour of operation) and economic evaluation are performed, including leverage investment analysis and net present value calculation.