Sizing and optimal operation of battery energy storage system for peak shaving application

Abstract

This paper presents a sizing methodology and optimal operating strategy for a battery energy storage system (BESS) to provide a peak load shaving. The sizing methodology is used to maximize a customer's economic benefit by reducing the power demand payment with a BESS of a minimum capacity, i.e. a system with a lowest cost. The BESS optimal operating strategy is based on dynamic programming and is aimed to minimize the energy cost while satisfying battery physical constraints. ©2007 IEEE.