Sizing battery energy storage systems for industrial customers with photovoltaic power

The battery energy storage system (BESS) helps reduce the electricity bill of industrial customers (IC) with photovoltaic power (PV). Given the current high investment cost of BESS, the detailed cost-benefit analysis of BESS considering PV uncertainty is needed for enterprise owners to judge whether the profits can be obtained by incorporating BESS. In this context, a bi-level stochastic programming model is proposed to determine the optimal power and capacity of BESS. The upper model aims at deciding the optimum size of BESS, and the lower model focuses on optimizing BESS operation. The benefit from reducing electricity bills, the benefit from financial subsidies, the investment cost, as well as the operation and maintenance cost of BESS are assessed carefully, the impacts of the lifetime characteristics of BESS on which are fully taken account of Simulation results on an actual IC with PV validate the effectiveness of the proposed methodology. (C) 2019 The Authors. Published by Elsevier Ltd.