Optimal Sizing of BESS for Industrial Peak Shaving Applications Considering Different Electricity Billing Rates

In this paper, a methodology is applied to size a battery-based energy storage system (BESS) for the reduction of demand peaks, the problem is formulated as a linear optimization problem to minimize battery costs and energy consumption of the network. The process is realized out based on an industrial demand profile with a determined time resolution, considering different billing rates, and electricity costs. The results demonstrate that the BESS in the peak reduction application can considerably reduce the energy charges. Also by means of case studies it is shown the impact on savings and return on investment when two different electricity billing rates are considered.