Energy management system for microgrids including batteries with degradation costs

Integration of renewable energy source (RES) and energy storage system (ESS) in microgrids has a potential benefit to users and system operators. However, new operating issues brought by RES and high cost of ESS need to be scrutinized for economic operation of microgrids. In order to evaluate the economic operation, this paper presents a predictive energy management system (EMS) for microgrids that manifests the process of battery degradation under the minimum system operating cost. The proposed EMS provides the power dispatch based on the hourly-ahead price and forecast data in a most cost-saving way, in which the battery degradation cost with respect to the depth of charge and lifetime is incorporated, transforming the long-term installation cost to the short-term operational cost that accounts for the real-time scheduling. The effectiveness of the proposed method is illustrated by case studies in the simulation.