Scheduling and Sizing Method for Battery Energy Storage System Based on Day-Ahead Prices

Price-based demand response programs can help reduce electrical expenses by means of controlling a battery energy storage system (BESS). Multiple studies implement a method known as peak shaving, where BESS electrical capacity and scheduling parameters are selected arbitrarily, causing inconsistent results. This research proposes a new BESS scheduling and sizing method based on day-ahead prices. It was demonstrated in a simulation with hourly load and price data, which showed how BESS electrical capacity can be selected for the fastest payback.