Feasibility Analysis of Centralized Storage Facilities in Isolated Grids

This paper analyzes the operating and economic benefits anticipated from the introduction of centrally managed battery energy storage systems (BESSs) in noninterconnected island (NII) grids with high renewable energy source (RES) penetration. A mixed integer linear programming based generation management model is developed to simulate the operation of NII systems with and without BESS facilities. The impact of BESS energy and power capacity sizing is discussed, showing that the main contribution of storage lies in the provision of fast response reserves that facilitate the integration of increased intermittent RES generation. A feasibility analysis is then performed, considering BESS facilities either as independent storage investments or as facilities being developed in conjunction with new wind power capacity. The levelized cost of energy or reserves is calculated to evaluate the required remuneration to ensure investment viability.