Optimal Battery Energy Storage System Deployment from Perspectives of Private Investors and System Operators for Enhancing Power System Reliability /

Abstract

Due to their intermittent nature, high penetration of renewable energy resources (RES) can deteriorate power system reliability. A battery energy storage system (BESS) offers an opportunity to reduce the uncertainty associated with RES and hence improve power system reliability. In the last decade, the cost of BESS has declined, and it has become increasingly feasible, but the BESS deployment decision ultimately depends on its Net-Benefit to the investor. Depending on the perspective of the investor, a private firm or the system operator, the deployment decision involves discovering the most optimal location, capacity, and technology of BESS. A sensitivity analysis based on Z-bus matrix is used for selecting the optimal location. In this thesis, from the narrow perspective of a private investor, the NetBenefit

function is the energy arbitrage value of BESS minus its overall cost. However, the system operator additionally values BESS because it enables more reliable system operation at reduced operating costs by increasing the utilization of RES generation and reducing the need to dispatch thermal power plants. After examining multiple power system reliability indices, the product of Expected Unserved Energy (EUE) and Value of Lost Load (VoLL) is incorporated into the Net-Benefit function of the system operator. In this thesis, MATPOWER Optimal Scheduling Tool (MOST) is used for testing the proposed Net-Benefit functions on a standard reliability test system (RTS) known as RTS-GMLC. Besides two types of lithium-ion BESS, lead acid and vanadium redox flow technologies are explored in this research. Three diverse case studies are examined in three exploration phases; the first phase helps determine search space whereas the second one narrows it down and the third phase finds the optimal BESS solution. Presented research results demonstrate that, over a period of 15 years, optimal BESS deployment can offer as much as $M164.8 and $M33.6 Net-Benefits to the system operator and private investor respectively.