Two‐stage optimal demand response with battery energy storage systems

Abstract

This study proposes a two‐stage co‐optimisation framework for the planning and energy management of a customer with battery energy storage systems (BESSs) and demand response (DR) programs. The proposed method can assist a customer to make the most beneficial plans to join DR programs and install BESS in the planning stage, and optimally schedule the loads, DG outputs and BESS according to the planning decisions made in the first stage. The novel method considers multiple DR programs, various customer types and demand scenarios, and the integration of BESS. Case studies on a small commercial building and a large commercial/industrial campus demonstrate the effectiveness of the proposed method and the impacts of BESS and DGs on customer behaviours. The proposed method can provide guidance to a customer to make the most beneficial decisions in an electricity market with multiple DR programs.