Optimal Operation of Battery Energy Storage System Considering Distribution System Uncertainty

We present a novel control strategy of charging and discharging batteries in a distribution system to optimize the energy transaction cost. With an increased proportion of renewable energy in a distribution system, the real demand curve may significantly deviate from the forecast curve, which can lead to an increased challenge for an energy distribution company in making an effective purchase plan. The proposed strategy aims at tracking the total forecast demand curve, and can mitigate risk and encourage demand-side bidding. In this paper, short-term load forecasting, wind power forecasting, and solar power forecasting are performed. To optimize profit, the optimal operation of energy storage systems in a distribution system was developed and solved in a two-level framework considering forecast uncertainties in day-ahead operation and mitigating the net demand gap in real-time operation. To quantify the risk mitigation and profits, the purchase strategies for uncertain and certain demand that occurs on the next day were compared. The promising results show that optimal operation of a battery energy storage system can reduce the energy cost and the transaction risk for an energy distribution company.