Battery Energy Storage System Allocation in Distribution Systems for Power Loss and Operational Costs Reduction

The insertion of generators in distribution systems modifies the network's historical passive characteristic, allowing the implementation of new operation modes. However, energy storage systems allocation is required to explore every feature provided by the decentralized generators entirely. In this sense, battery energy storage systems provide greater flexibility in the operation of distribution systems. Nevertheless, the battery's power injection/absorption may cause active power loss increase and voltage profile variation if there is not proper planning of its allocation. In this context, this article proposes two allocation strategies, one aiming at the active power losses and the other at the costs of these losses. Both approaches also include indications of voltage variations and violations of the operational limits. Finally, the energy arbitrage is calculated for every possible battery allocation point to verify the possibility of obtaining economic advantages by buying and selling energy in a dynamic tariff system. The allocation strategies are tested in the widely used 33-bus system with demand and tariff of a real system. The results indicate different but feasible allocations for each approach due to demand and tariff volatility.