Exploring economic criteria for energy storage system sizing

Abstract

This paper presents two economic criteria for guiding the energy storage system (ESS) sizing in grid-connected microgrids. The internal power output model and the economic operation model of ESS are firstly established. Then, the combination of heuristic adjustment strategy and hybrid particle swarm optimization algorithm are introduced to solve the optimal operation model of ESS. Then according to the ESS life model and cost-benefit analysis, a static investment economic criterion which is easy and simple to be calculated is proposed to demonstrate the economic feasibility of ESS investment programs in the short term. Considering the time value of currency, a dynamic investment economic criterion is proposed later for long-term investment projects. Furthermore, the ESS sizing boundary of achieving profits could be also obtained according to the criteria which can indicate the economic attractiveness or resistance to ESS investors in the microgrid. A case study has verified its effectiveness. At the same time, sensitivity analysis is given to show the impact on key parameters, such as investment unit price and electricity purchase price on ESS investment.