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The Economic Benefits of Battery Energy Storage System in Electric Distribution System

The goal of this study was to determine the economic feasibility of battery energy storage system (BESS). Three major economic benefits derived from BESS using were studied: 1. Energy Purchase Shifting, 2. Distribution Feeder Deferral, 3. Outage Avoidance. The economic analysis was based on theoretical modeling of the BESS and distribution system. Three simulation models were developed to quantify the effects of different parameters, such as: BESS round-trip efficiency, life span, rated power, rated discharge time, marginal cost of electric energy, 24 h feeder load profile, annual load variation, feeder load growth rate and feeder length. An optimal battery charging/discharging method was presented to determine the differential cost of energy (DCE). The annual maximum DCE was calculated using stochastic probability analysis on seasonal load variation. The net present value was evaluated as the present value difference between two investments: first, the distribution feeder upgrade without BESS deferral, and second, with BESS deferral. Furthermore, the BESS’s contributions under different outage strategies were compared. It was determined that feeder length is the most significant parameter. The economics of the studied system becomes favorable when the feeder length exceeds a critical value.

Identiferoai:union.ndltd.org:wpi.edu/oai:digitalcommons.wpi.edu:etd-theses-1297
Date25 April 2013
CreatorsZhang, Tan
ContributorsAlexander E. Emanuel, Advisor, Khalid Saeed, Committee Member, , John A. Orr
PublisherDigital WPI
Source SetsWorcester Polytechnic Institute
Detected LanguageEnglish
Typetext
Formatapplication/pdf
SourceMasters Theses (All Theses, All Years)

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