On optimal battery sizing for households participating in demand-side management schemes

Abstract

The smart grid with its two-way communication and bi-directional power layers is a cornerstone in the combat against global warming. It allows for the large-scale adoption of distributed (individually-owned) renewable energy resources such as solar photovoltaic systems. Their intermittency poses a threat to the stability of the grid, which can be addressed by the introduction of energy storage systems. Determining the optimal capacity of a battery has been an active area of research in recent years. In this research, an in-depth analysis of the relation between optimal capacity and demand and generation patterns is performed for households taking part in a community-wide demand-side management scheme. The scheme is based on a non-cooperative dynamic game approach in which participants compete for the lowest electricity bill by scheduling their energy storage systems. The results are evaluated based on self-consumption, the peak-to-average ratio of the aggregated load and potential cost reductions. Furthermore, the difference between individually-owned batteries and a centralised community energy storage system serving the whole community is investigated.