Novel Droop Control of Battery Energy Storage Systems Based on Battery Degradation Cost in Islanded DC Microgrids

This paper presents a new droop control method to reduce battery degradation costs in islanded direct current (DC) microgrids for multiple battery energy storage systems (BESSs). BESSs may have varying installation costs and battery cycle life characteristics depending on battery type, energy capacity, and maximum output power. These differences cause different battery degradation costs among BESSs despite exchanging the same amount of energy. To autonomously reduce the total battery degradation cost, an incremental cost (IC) of a BESS is used as a criterion for determining the state-of-charge level of BESSs and is calculated based on the battery cycle life curve containing the battery degradation information. By adopting an IC–voltage droop control, the BESSs can maintain an operating point of equal IC, an optimal point for cost minimization. Subsequently, small-signal stability analysis is performed using the state-space model of the proposed method. The case study validates that the proposed method can reduce the total battery degradation cost with a small-signal stable operation in islanded DC microgrids.