Optimal Planning of Battery Energy Storage System in a Built Environment With Hybrid Thermal Management System and Temperature-Induced Battery Degradation

Abstract

Effective thermal management is critical for the integration of battery energy storage systems (BESS) in office buildings, as the heat generated during operation significantly impacts both system efficiency and cooling costs. However, existing studies often neglect the critical thermal dynamics of batteries and their bidirectional coupling with building energy management. This oversight compromises battery lifespan, operational safety and economic viability. To address this gap, this paper proposes a two-stage optimisation framework for BESS planning in a built environment that fully integrates these thermal effects. Specifically, a hybrid thermal management framework is formulated by coupling a battery thermal model with building envelope heat balance equations. Furthermore, a temperature-dependent degradation model is established based on the Arrhenius law, and a virtual energy storage (VES) model considering building orientation is introduced to characterise the demand response potential. The framework co-optimises BESS sizing and daily dispatch to minimise total life-cycle costs. To ensure computational tractability, the nonconvex model is reformulated as a mixed-integer second-order cone programming (MISOCP) problem. Case studies demonstrate that, compared to conventional methods, the proposed approach extends battery lifespan to 10.5 years (a 25% increase) and reduces required capacity by 27.3%, significantly improving life-cycle economics compared to conventional methods.