Optimal Sizing of Battery Storage Systems for Industrial Applications when Uncertainties Exist

Guido Carpinelli, Anna Rita Di Fazio, Shahab Khormali and Fabio Mottola
Additional contact information
Guido Carpinelli: Department of Electrical Engineering and Information Technology, University of Napoli Federico II, Naples 80125, Italy
Anna Rita Di Fazio: Department of Electrical Engineering and Information, University of Cassino and Southern Lazio, Cassino 03043, Italy
Shahab Khormali: Department of Electrical Engineering and Information Technology, University of Napoli Federico II, Naples 80125, Italy
Fabio Mottola: Department of Electrical Engineering and Information Technology, University of Napoli Federico II, Naples 80125, Italy

Energies, 2014, vol. 7, issue 1, 1-20

Abstract: Demand response (DR) can be very useful for an industrial facility, since it allows noticeable reductions in the electricity bill due to the significant value of energy demand. Although most industrial processes have stringent constraints in terms of hourly active power, DR only becomes attractive when performed with the contemporaneous use of battery energy storage systems (BESSs). When this option is used, an optimal sizing of BESSs is desirable, because the investment costs can be significant. This paper deals with the optimal sizing of a BESS installed in an industrial facility to reduce electricity costs. A four-step procedure, based on Decision Theory, was used to obtain a good solution for the sizing problem, even when facing uncertainties; in fact, we think that the sizing procedure must properly take into account the unavoidable uncertainties introduced by the cost of electricity and the load demands of industrial facilities. Three approaches provided by Decision Theory were applied, and they were based on: (1) the minimization of expected cost; (2) the regret felt by the sizing engineer; and (3) a mix of (1) and (2). The numerical applications performed on an actual industrial facility provided evidence of the effectiveness of the proposed procedure.

Keywords: smart grid; demand response; storage systems; sizing; decision theory (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: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://www.mdpi.com/1996-1073/7/1/130/pdf (application/pdf)
https://www.mdpi.com/1996-1073/7/1/130/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:7:y:2014:i:1:p:130-149:d:31875

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().