Exploring Economic Criteria for Energy Storage System Sizing

Jichun Liu, Zhengbo Chen and Yue Xiang
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Jichun Liu: College of Electrical Engineering, Sichuan University, Chengdu 610065, China
Zhengbo Chen: College of Electrical Engineering, Sichuan University, Chengdu 610065, China
Yue Xiang: College of Electrical Engineering, Sichuan University, Chengdu 610065, China

Energies, 2019, vol. 12, issue 12, 1-17

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.

Keywords: economic criteria; energy storage system sizing; microgrid; cost-benefit analysis (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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