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Energies 2017, 10(1), 68; doi:10.3390/en10010068

Impact of Battery Energy Storage System Operation Strategy on Power System: An Urban Railway Load Case under a Time-of-Use Tariff

1
Department of Electrical and Computer Engineering, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 08826, Korea
2
Research and Development Laboratory, MasterSpace, 1504, 361 Simin-daero, Dongan-gu, Anyang-si, Gyeonggi-do 14057, Korea
3
Metropolitan Transportation Research Center, Korea Railroad Research Institute (KRRI), 176, Cheoldo Bangmulgwan-ro, Uiwang-si, Gyeonggi-Do 16105, Korea
*
Author to whom correspondence should be addressed.
Academic Editor: Paul Stewart
Received: 24 October 2016 / Revised: 12 December 2016 / Accepted: 3 January 2017 / Published: 7 January 2017
View Full-Text   |   Download PDF [2497 KB, uploaded 7 January 2017]   |  

Abstract

Customer-owned battery energy storage systems (BESS) have been used to reduce electricity costs of energy storage owners (ESOs) under a time-of-use (TOU) tariff in Korea. However, the current TOU tariff can unintentionally induce customer’s electricity usage to have a negative impact on power systems. This paper verifies the impact of different BESS operation strategies on power systems under a TOU tariff by analyzing the TOU tariff structure and the customer’s load pattern. First, several BESS operation strategies of ESO are proposed to reduce the electricity cost. In addition, a degradation cost calculation method for lithium ion batteries is considered for the ESO to determine the optimal BESS operation strategy that maximizes both electricity cost and annual investment cost. The optimal BESS operation strategy that maximizes ESO’s net benefit is illustrated by simulation using an urban railway load data from Namgwangju Station, Korea. The results show that BESS connected to urban railway loads can negative impact power system operation. This is due to the high BESS degradation costs and lack of incentive of differential rates in TOU tariff that can effectively induce proper demand response. View Full-Text
Keywords: price-based demand response; time-of-use tariff; urban railway load; energy storage owner (ESO); battery energy storage system (BESS); operation strategy price-based demand response; time-of-use tariff; urban railway load; energy storage owner (ESO); battery energy storage system (BESS); operation strategy
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Kim, H.; Heo, J.-H.; Park, J.-Y.; Yoon, Y.T. Impact of Battery Energy Storage System Operation Strategy on Power System: An Urban Railway Load Case under a Time-of-Use Tariff. Energies 2017, 10, 68.

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