Feasibility of a battery storage system for a renewable energy park operating with price arbitrage

Abstract

The employment of battery storage is recognized to be a solution for managing the variability of renewable energy sources in power systems. In this paper the feasibility of integrating a battery energy storage system (BESS) into a renewable energy park was investigated. The energy park consists of three wind turbines with a total generating capacity of 6MW and 2MW of solar photovoltaic panels. A maximum power export limit of 5 MW to the grid is enforced. The optimal size of the BESS was calculated to maximize the profit made by the energy park through participating in the electricity spot market. To do this, a linear optimization model embedded within a net present cash flow approach was developed. Optimal size of the battery storage capacity and optimal power rating of the inverter for different battery costs assumptions were examined.