Optimal Configuration Scheme for BES Considering Multiple Market Segment Revenues and Degradation Cost

Abstract

Battery energy storage (BES) can effectively maintain the balance of supply and demand in the grid under the high penetration of various renewable energy forms. The prerequisite for BES large-scale application in the grid is reasonable configuration of BES. In this work, we aim to solve the problem of insufficient rationality and economy of the existing BES configuration scheme by proposing an optimal configuration scheme for BES considering multiple market segment revenues and degradation cost. The scheme aims to maximize the net present value (NPV) of BES and constructs a dynamic combined revenue model for BES participation in multiple market segments. Additionally, the proposed scheme can correct the degradation rate by using the rain-flow counting algorithm (RCA) and add constraints to BES capacity. The simulation results show that the scheme can achieve the optimal economy of BES configuration and achieve the balance between revenue and degradation.