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Processes 2018, 6(10), 204;

Effect of Tariff Policy and Battery Degradation on Optimal Energy Storage

Instituto de Ingeniería Química, Facultad de Ingeniería, Universidad de la República, Montevideo 11300, Uruguay
Author to whom correspondence should be addressed.
Received: 15 September 2018 / Revised: 19 October 2018 / Accepted: 19 October 2018 / Published: 22 October 2018
(This article belongs to the Special Issue Modeling and Simulation of Energy Systems)
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In the context of an increasing participation of renewable energy in the electricity market, demand response is a strategy promoted by electricity companies to balance the non-programmable supply of electricity with its usage. Through the use of differential electricity prices, a switch in energy consumption patterns is stimulated. In recent years, energy self-storage in batteries has been proposed as a way to take advantage of differential prices without a major disruption in daily routines. Although a promising solution, charge and discharge cycles also degrade batteries, thus expected savings in the energy bill may actually be non-existent if these savings are counterbalanced by the capacity lost by the battery. In this work a convex optimization problem that finds the operating schedule for a battery and includes the effects of current-induced degradation is presented. The goal is to have a tool that facilitates for a consumer the evaluation of the convenience of installing a battery-based energy storage system under different but given assumptions of electricity and battery prices. The problem is solved assuming operation of a commercial Li-ion under two very different yet representative electricity pricing policies. View Full-Text
Keywords: demand response; energy management; energy storage; optimal battery operation; battery degradation demand response; energy management; energy storage; optimal battery operation; battery degradation

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Corengia, M.; Torres, A.I. Effect of Tariff Policy and Battery Degradation on Optimal Energy Storage. Processes 2018, 6, 204.

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