Optimal sizing of distributed energy storage with consideration of demand response in distribution systems

Abstract

In future smart grids, energy storage systems (EESs) and demand response (DR) are expected to have an important role in balancing load changes arising from life-style of consumers and varying output of some renewable energy resources. However, activating DR and installing ESSs need huge investment forcing system owner to justify their effectiveness prior to any implementation. This paper presents a model to find the optimal capacity of EESs in distribution systems with demand responding to electricity price changes. The model aims at maximizing system owner profit by lessening total electricity provision costs. The model is formulated as a mixed integer non-linear programming problem. Due to the intricacy and big size of the problem, a decouple-based procedure is proposed wherein optimal charge/discharge pattern of EESs is found by means of a quadratic programming (QP) model. The method is applied to the IEEE 33-bus network and simulation results are thoroughly discussed.