Optimization of BESS Capacity Under a Peak Load Shaving Strategy

Abstract

Battery energy storage systems (BESSs) are becoming increasingly competitive in the global energy landscape, thanks to the strong cost reduction that has taken place in recent years and it is expected to continue in the next future. Among the many benefits BESSs can provide, time shifting can be exploited by electricity consumers to save on the electricity bill, charging the storage during the off-peak hours and discharging when the cost of electricity is high. This paper describes a simple procedure to optimize the BESS capacity under a peak load shaving strategy, in presence of a time-of-use (TOU) electricity rate, able to guarantee, at the same time, the flattest daily power diagram and the maximum benefit for the electricity consumers, reducing both the energy and the power component of the electricity bill. A case study is also presented and the modifications of the load diagram due to the BESS operation are shown.