Towards benefit-stacking for grid-connected battery energy storage in distribution networks with high photovoltaic penetration

This paper proposes an optimisation program for scheduling the operations of battery energy storage system (BESS) in a distribution network, in order to maximise energy arbitrage gains. BESS are increasingly being deployed for stationary applications in power systems globally. Due to the high capital cost of BESS deployment, it is necessary to have economic justification for investments. There are several applications of BESS in the power network such as frequency regulation, peak-shaving, voltage regulation, arbitrage and network upgrade deferral. Investors in BESS therefore aim to gain maximum ‘stacked’ benefits through the provision of these services. BESS, however, cannot be available to provide all these services at the same time and space. Commitment to one service often means inability to provide another at the same time. A linear program (LP) is used in this paper to schedule the charging and discharging of BESS in order to gain maximum benefit from energy arbitrage and peak shaving, while maximising the use of energy from installed photovoltaic (PV) systems. The objective also involves supplying network demand at the cheapest electricity cost at any time. The work in this paper is an integral part of a holistic optimisation of the BESS operations to participate in provision of multiple services. The aim is to create maximum economic benefits while maintaining operations in a system that promotes battery longevity. Simulations are carried out on a real low voltage (LV) distribution network to demonstrate the effectiveness of this approach.