A Dynamic Battery Charging Approach for Energy Trading in the Smart Grid

Battery systems are going to play a major role in the emergence of the smart grid system. In this paper, we examined the effect of the battery system dynamics in the energy trading from the end-user perspective. In particular, a novel energy trading framework called Dynamic Battery Charging is developed to use the battery storage for energy trading strategically. Here, the market is considered to be partially decentralized with a two-way trade framework. The end-user is free to decide the amount of energy to bilaterally trade with the central grid. The proposal is tested and validated through a case study of three different load profiles (different in scale) in three energy markets. The simulation results clearly show the profitability of the proposed strategy in all test benchmarks. The proposed strategy resulted in 10-30% profit in Ontario, California and New-York market. Further, the prospect of reduced battery prices makes the proposal even more attractive.