Evaluating the Role of Integrated Photovoltaic and Energy Storage Systems in the Net-Zero Transition: A Case Study in Taiwan

Abstract

This study investigates the role of integrated photovoltaic and energy storage systems in facilitating the net-zero transition for both governments and consumers. A bi-level planning model is proposed to address the challenges encountered by existing power supply systems in meeting the escalating electricity demands. In the upper level, governments provide incentives to users through subsidies for photovoltaic power generation, energy storage system installations, and electricity procurement. Meanwhile, at the lower level, load requirements are optimized, and costs are minimized by integrating solar power generation, battery energy storage, and electricity procurement. To effectively address these complexities, a hybrid physics-inspired algorithm for bi-level programming is utilized for iterative problem solving. The findings indicate that relying on photovoltaic output during peak load periods and conducting small electricity purchases, while storing excess electricity, proves to be an efficient approach. This model offers a cost-effective solution for managing energy consumption, mitigating potential power shortages, and reducing frequent outages. Furthermore, this research contributes to a comprehensive understanding of the net-zero transition and its implications for power supply systems. Specifically, it highlights the significance of integrated photovoltaic and energy storage systems in assisting businesses with specific energy storage planning, determining optimal charging and discharging schedules, and considering government subsidies.