Economic Evaluation of Using Battery Storage in Smart Grid with Distributed Generation Units in Day Ahead Market

Abstract

In this paper, the economic evaluation of using battery storage is done in a distribution network in the presence of distributed generation units for a private distribution company. For this purpose, a battery bank of lithium-ion with high energy and power density owned by distribution company in the network of IEEE 33-bus is used. The market is run based on retail model in which, there is a competition between distributed generation units in order to sell energy to the distribution company, and the distribution company is able to conclude contracts with manufacturers in the form of day ahead market. In order to complete economic assessment, various details including battery and converter efficiency as well as utilization costs are considered. In this short-term planning, unit commitment and load flow is done and the results and costs are compared in different scenarios with and without the battery bank. The simulations are done by GAMS software, and load dispatch constraints, the capacity of connection to the upstream network, and limitations of battery banks are considered.